EURAUD broke above its range resistance to signal that a rally of the same height as the chart formation is in the works. Before that happens, the pair might still pull back to nearby support zones to gather more buying energy.

The Fibonacci retracement tool shows where more buyers might be waiting. The 38.2% level is at 1.6577 near the 1.6600 handle while the 50% Fib lines up with the broken range resistance. A larger pullback could reach the 61.8% Fib at 1.6456 near the 100 SMA dynamic support.

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 or that support levels are more likely to hold than to break.

Stochastic is still heading south for now and has room to go before reflecting exhaustion among sellers, so the correction could keep going until oversold conditions are met. RSI is also heading down, so price could follow suit while bearish pressure is in play.

If any of the Fibs hold as support, EURAUD could resume the climb to the swing high near the 1.6800 major psychological mark.

The Aussie sold off earlier this week when the RBA decided to shift to a cautious bias and keep rates on hold instead of hiking. This suggests that the formerly hawkish central bank could sit on its hands for much longer, now that inflationary pressures are subdued and economic growth has slowed.

Meanwhile, the ECB already signaled a shift to a less hawkish stance earlier on as well. Still, the euro seems to be banking on at least one more rate hike in the next policy decision, which is probably why the shared currency remains supported.

Risk sentiment changes resulting from the NFP release might also impact AUD price action before the week comes to a close.