• EURAUD reversed from support area
• Likely to rise to 1.6375

EURAUD currency pair recently reversed up strongly from support area lying between the long-term support level 1.6056 (which has been reversing this currency pair from June as can be seen from the daily EURAUD chart below) and the lower daily Bollinger Band. The upward reversal from the support level 1.6056 stopped the previous short-term impulse wave (i) from the start of December.

Given the recent formation of the bullish divergence on the daily Stochastic indicator, the strength of the aforementioned support area and the moderately bullish euro sentiment seen across the FX markets today –   EURAUD is likely to rise further toward the next resistance level 1.6375 (top of the previous minor impulse wave 1 from the start of December).