EUR/AUD Bearish Trend Continues as Australian Dollar Gains Strength

The EUR/AUD pair has been experiencing significant bearish pressure due to the strong Australian dollar. According to technical analyst Christopher Lewis, this market is trying to break through a massive support level at around 1.6000.

Lewis notes that the euro initially gapped higher and rallied on Monday but struggled to gain momentum against the Aussie. The pair has been bouncing from significant support levels, with the Australian dollar benefiting from expectations of further interest rate hikes by the Reserve Bank of Australia.

The fundamental picture remains bearish, with Lewis stating that short-term rallies are more likely to be selling opportunities rather than buying signals. He highlights a big zone of support between 1.60 and 1.61, warning that if the market breaks below this level, it could lead to a significant decline.

Lewis remains bearish on the EUR/AUD pair, citing major headwinds facing the euro due to energy shock problems. He suggests that only a significant shift in expectations from Australian central bankers would allow the pair to potentially break above the 50-day EMA and target the 200-day EMA.