EUR/AUD Price Analysis: RSI hidden bullish divergence, bulls seek upside continuation

• EUR/AUD bulls are in the driving seat in a continuation medium term prospect.
• 4-hour divergence is compelling for a break of near-term resistance in coming sessions. 

The price of EUR/AUD is sending bullish smoke signals from afar given that the longer-term outlook is on of recovery, while the nearer-term developments are hidden divergence. 

The following illustrates the bullish bias in a top-down analysis and could potentially be something for traders to act upon. 

Weekly chart

From a weekly perspective, the price is in a bullish trend following a healthy 50% mean reversion and en-route for a test of the weekly October 2020 supply area.

Daily chart

From a daily perspective, the price has met support and is seeking to correct the correction of the prior daily bullish impulse. 

4-hour chart 

From a 4-hour basis, the price is displaying hidden bullish divergence from the RSI. 

The bulls have also broken the old resistance structure, 21-EMA, which would now be expected to act as support aligned with the between the 1.6225 and 1.6205 zones should the resistance hold bulls off on first attempts.