EURAUD is cruising higher with its higher lows connected by a rising trend line over the past week. Price looks ready for a test of this support level, which happens to line up with several inflection points.

The Fibonacci retracement tool shows that this lines up with the 50% level at the 1.5700 major psychological mark and former resistance. A larger dip could reach the 61.8% Fib that coincides with the 100 SMA dynamic support level.

On the subject of moving averages, the 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside. In other words, support is more likely to hold than to break. The gap between the moving averages is also sustained, so there’s no threat of a bearish crossover anytime soon.

Stochastic is still heading south to signal the presence of bearish pressure, but the oscillator is dipping into the oversold region to reflect exhaustion among sellers. RSI has more room to move south before reaching the oversold area, so sellers could stay in control for a bit longer.

If any of the Fibs are able to keep losses in check, EURAUD could recover to the swing high at 1.5800 or higher.

The Australian economy just printed weaker than expected headline jobs data for April, as the expiry of the JobSeeker subsidy weighed on employment prospects. This could keep the Aussie weighed down for the rest of the trading sessions, on top of risk-off flows stemming from geopolitical tensions in the Middle East.

Meanwhile, the euro could take cues from the PMI readings due on Friday, as small improvements are eyed for the manufacturing sector. Dips in activity are expected in the services industries, but upside surprises might be reported and could keep the euro bid.