EURAUD is trending higher inside a rising channel on the 4-hour chart, with price setting its sights on the channel top at 1.5800. Technical indicators are suggesting a continuation of the climb for now.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that buyers are in control. However, the gap between the moving averages is narrow enough to signal weakening bullish pressure.

Stochastic is heading higher to show that bullish momentum is in play, but the oscillator is approaching the overbought zone to signal exhaustion. RSI is also on the move up and has room to climb before reflecting exhaustion among buyers.

Turning lower would mean that sellers are taking over and that a dip back to nearby support levels would follow. The mid-channel area of interest could hold as support around the 1.5750 minor psychological mark while the channel bottom at 1.5500 could be a strong floor as well.

The Aussie could take cues from the release of the April jobs data, which would likely show the impact of the expiry of the JobSeeker stimulus program. A slower pace of hiring is eyed, and it might show that the gains were mostly from part-time employment just like in the previous month.

A decline in employment might mean losses for the Aussie, as it would highlight the RBA’s concerns about the job market. A larger increase, on the other hand, could shore up confidence in the Australian economy and its recovery prospects.

Meanwhile, the euro could wait on the release of flash PMI readings this Friday. Improvements are eyed for the manufacturing sectors of Germany and France while the services industry could report dips in activity.

Stronger than expected results could spur a break past the channel top and a steeper climb for EURAUD while downbeat data could allow the resistance to hold.