EURAUD recently broke above its falling trend line on the 4-hour chart to signal that a reversal from the downtrend is due. Price could still pull back to the broken resistance, which might now hold as support.

Applying the Fibonacci retracement tool shows that the 61.8% level lines up with the broken trend line near the 1.5400 major psychological mark. A shallow pullback could already find buyers at the 50% Fib that lines up with the 1.5450 minor psychological mark and the 100 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that support levels might still break. Then again, EURAUD is trading above both moving averages, so these could hold as dynamic support on dips.

Price is currently testing the 38.2% Fib that lines up with the 200 SMA to add to its strength as a floor. Stochastic has room to head lower, so price could follow suit until oversold conditions are met. RSI has more room to move south, which suggests that sellers could stay in control for a bit longer.

Economic data from the eurozone has been mostly upbeat, as the latest round of PMI figures all surprised to the upside. These reflected slower contractions in the services industry and a faster pace of growth in the manufacturing industry.

The upcoming German Ifo business climate index is slated to show an improvement as well, possibly leading to another boost for the shared currency.

There are no major reports from Australia, so the commodity currency could take cues from sentiment. Note that traders are currently focused on the blockage in the Suez Canal, which could delay shipments and purchases of raw materials and therefore be bearish for commodity currencies.