EURAUD recently broke through the resistance at the 1.6150 minor psychological mark then zoomed up to the 1.6200 area. Price is pulling back from these highs and could find buyers at the nearby Fibonacci retracement levels.

The 38.2% Fib lines up with the former resistance around 1.6135, then the 50% level is at 1.6115. A larger correction could reach the 61.8% Fib closer to the 1.6100 major psychological mark and 100 SMA dynamic support.

On the subject of moving averages, the 100 SMA is above the 200 SMA to signal that the path of least resistance is to the upside or that support levels are more likely to hold than to break. In that case, EURAUD could make its way back up to the swing high at 1.6203 or higher.

Stochastic is still heading south to signal the presence of bearish pressure, though, so the pullback could keep going until oversold conditions are met. RSI has more room to slide before reflecting oversold levels, so price could keep following suit.

EURAUD has a couple of catalysts to contend with, namely the ECB decision and Australian jobs report. No actual rate changes are expected from the central bank this time, as Lagarde could reiterate their data-dependent approach and refrain from giving clues on the timing of their next easing move.

Meanwhile, Australia could print a downbeat jobs report and further dampen hopes of seeing an RBA rate hike anytime soon. Job vacancies have been on the decline as companies continue to reel from higher borrowing costs, likely weighing on wage growth as well.

However, a surprise rate cut from the ECB could mean further downside for EURAUD, especially if the press conference hints at more easing action to come. On the flip side, an upside surprise for Australia’s jobs report would highlight labor market resilience and possibly spur a sustained bearish move for the pair.