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      EURAUD Reversal Rally to 1.647: Bullish Continuation or Dead Cat Bounce?

      Gerik

      Forex

      Economic

      Summary:

      EURAUD is trading around 1.645–1.650, rebounding strongly from recent lows near 1.617. The move reflects short-term EUR recovery and AUD weakening after a strong run....

      Buy

      EURAUD

      EXP
      PENDING

      1.64600

      Entry Price

      1.65400

      TP

      1.63900

      SL

      1.66252 +0.00632 +0.38%

      --

      Point

      PENDING

      1.63900

      SL

      CLOSING

      1.64600

      Entry Price

      1.65400

      TP

      Overview

      EURAUD is trading near 1.647, marking a sharp rebound from the recent bottom around 1.617–1.620. This represents a significant shift in short-term structure after a sustained downtrend from 1.73 → 1.61 earlier in 2026. The current move is likely driven by a combination of EUR short covering and weakening AUD momentum after its strong commodity-driven rally. This is not random noise it’s a corrective impulse with real momentum, meaning the market has transitioned from pure bearish trend into a rebound phase.

      Market Sentiment

      Sentiment has shifted from bearish to short-term bullish. The previous downtrend created heavy short positioning, and now the market is unwinding those positions aggressively. This creates a squeeze effect, pushing price up quickly. However, this is still a counter-trend move on higher timeframe, meaning buyers are opportunistic rather than dominant. Institutions are likely taking profit on shorts rather than fully reversing bias. This makes the move tradable, but fragile.

      Technical Analysis

      EURAUD Reversal Rally to 1.647: Bullish Continuation or Dead Cat Bounce?_1
      On M15, price has broken above the Bollinger Bands midline (20,0,2) and is now pushing toward the upper band, with bands expanding this confirms strong bullish momentum. Ichimoku (9,26,52) shows price breaking into and slightly above the cloud, with Tenkan-sen crossing above Kijun-sen clear bullish signal. The cloud ahead is thin, meaning continuation is possible if momentum holds. Stochastic (5,3,3) is near overbought but not yet crossing down, indicating momentum is still active. Immediate resistance is 1.6520–1.6550, while support is 1.6380. As long as price holds above 1.6400, bullish continuation remains valid.

      Trading Recommendation

      Entry: 1.6460
      Take Profit: 1.6540
      Stop Loss: 1.6390
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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