EURAUD is resuming its climb after bouncing off the area of interest and rising trend line visible on its 4-hour chart. The Fibonacci extension tool shows the levels that bulls are aiming for.

The 38.2% extension is at 1.5970 then the 50% level is around the 1.6050 minor psychological mark. Stronger bullish momentum could take EURAUD up to the 61.8% level at 1.6126 that lines up with the swing high or the 76.4% level at 1.6224. The full extension is near the 1.6400 major psychological mark.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break. Price found support at the 100 SMA dynamic inflection point that lines up with the rising trend line.

RSI is moving north, so EURAUD could follow suit while buyers have some energy left. The oscillator has room to climb before indicating overbought conditions.

Stochastic is also heading higher, but the oscillator is already closing in on the overbought zone to signal that buyers might need a break soon. Turning lower would suggest that sellers are taking over.

The upcoming ECB decision could bring in some volatility for the euro, although market watchers are not really expecting big changes from the central bank.

More clarity about the ECB’s plans after the expiration of the PEPP program in March next year is eyed, but the lack of any timeline for tapering could mean more downside for the shared currency.

The Australian dollar has its employment report to look forward to, as a rebound of 200K in hiring is eyed. Recall that the economy shed 46.3K jobs in October, so a recovery might mean some fresh upside for the currency.

Other than all that, risk sentiment could be a major driver of price action throughout the week, as the FOMC decision is also coming up.