EURAUD has formed higher lows and higher highs connected by an ascending channel on its hourly time frame. Price is testing the resistance and might be due for a pullback to support soon.

The Fibonacci retracement tool shows additional levels where buyers might be waiting. The 38.2% Fib is at 1.6868, then the 50% level is close to the mid-channel area of interest at the 1.6843. A larger pullback could reach the 61.8% Fib at 1.6818 or the channel bottom at the 1.6800 major psychological mark.

The 100 SMA is above the 200 SMA to suggest that the path of least resistance is to the upside or that support levels are more likely to hold than to break. The 100 SMA even lines up with the 50% Fib to add to its strength as support.

Stochastic is turning lower from the overbought zone to indicate exhaustion among buyers and a possible return in bearish pressure. RSI is also heading down without reaching the overbought area, hinting that sellers are eager to take over.

EURAUD could take cues from Australia’s jobs report due on Thursday’s Asian session, as a slower increase in employment is eyed. Weaker than expected results could undermine the odds of another RBA interest rate hike soon, which could mean fresh downside for the Aussie.

There are no other major reports due from both the eurozone and Australia for the rest of the week, so this pair might be pushed around by market sentiment as well.

Today has the FOMC minutes lined up, and the outlook on borrowing costs might impact demand for higher-yielding assets and safe-havens. In particular, a hawkish tone could mean downside for risk assets since the possibility of higher borrowing costs might weigh on business and consumer activity, thereby reviving recession fears.