- EUR/AUD fell to around 1.6250 during the Asian session on Wednesday.
- The cross is forming a bearish trend below the 100-period EMA and the RSI indicator is in a bearish trend.
- Initial support is seen at 1.6183;
The EUR/AUD cross struggled around 1.6250 in early European trade on Wednesday. US President-elect Trump’s proposal to impose tariffs on Chinese goods weakened the Australian dollar (AUD) as Australia is one of China’s biggest exporters.
The bearish sentiment for EUR/AUD remains on the 4-hour chart as the crossover remains below the key 100-period exponential moving average (EMA). Additionally, the bearish momentum is supported by the Regional Strength Index (RSI) which is trading below its moving average near 46.50, suggesting room for further declines in the near-term.
Initial support for the crossover is seen near the lower Bollinger Bands at 1.6183. Further losses could lead to 1.6135, the October 18 low.
On the upside, the upper boundary of the Bollinger Band near 1.6293 is a direct resistance level for the price. The next hurdle is the 100-day EMA at 1.6322. A subsequent buy would see a match at 1.6500 round number.
EUR/AUD 4-hour chart
