EURAUD busted through the top of its symmetrical triangle on the 4-hour time frame to signal that a longer-term climb is in order. Price has since retested the broken resistance, which appears to be holding as support.

If buyers continue to defend this level, EURAUD could climb back up to the upside targets marked by the Fibonacci extension tool. The 38.2% level is at 1.5580 then the 50% level is at 1.5613. Stronger bullish momentum could take the pair to the 61.8% level at 1.5645 or the 76.4% level that lines up with the swing high. The full extension is near the 1.5750 minor psychological resistance.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside. In other words, support is more likely to hold than to break. These moving averages also line up with the broken triangle top to add to its strength as support.

Stochastic has already dipped to the oversold region to suggest that sellers are exhausted. Turning higher would mean that buyers are about to take over and allow the climb to resume. RSI is also bottoming out without reaching the oversold region, hinting that buyers are eager to return.

Note that the triangle spans around 350 pips, so the resulting climb could be of at least the same height.

Australia recently reported better than expected jobs figures, as the employment change for March came in at 70.7K versus the estimated 35.2K increase. The jobless rate improved from 5.8% to 5.6% versus the consensus at 5.7%.

However, underlying data revealed a drop in full-time hiring, which means that the gains were mostly part-time work. Note that the end of the government’s job stimulus program could also mean more job losses in the coming months.

There are no major reports due from the eurozone, so EURAUD price action could hinge mostly on AUD weakness and overall market sentiment.