EUR/AUD technical analysis (daily chart): 05.09.23

EUR/AUD technical analysis (daily chart):

EUR/AUD remains within an established uptrend on the daily chart, although have retraced back from their highs in three waves. We do not know whether this marks the end of the retracement and momentum will now realign with the bullish trend and break to new highs, or the cross is still within a retracement. Either way, we could be approaching a leg higher.

A small doji formed at the 50% retracement level and 20-day EMA yesterday, although this is due to low-liquidity trade as opposed to a high-volume indecision day. Therefore, we may want to allow for some noise around current levels. But the bias remains bullish above 1.6600 / July high, so any low volatility dips towards this level could be of interest for a near-term bullish setup.