Two main things are happening simultaneously which make a good buy sentiment for EURAUD. First, EUR seems pretty steady these days for buyers as the market tends to lose preference to sell EUR toward new lows. A break of 1.0818 level would need to be figured on EURUSD before that becomes a theme again and we’re pushing further away from that level. Also, the People’s Bank of China devalued their currency to remain competitive for exports causing the USDCNH to see its largest 1-day gain in history. This move saw Asian currencies aggressively decline as the signs of deflationary pressures continue.
Additionally, from an economic surprising point of view, Europe is on an upswing as Asian economies are showing a chain of misses on their economic data reveals. If this trend continues, continual easing could continue adding further pressure on AUD and other related currencies.
As you see in Figure, bullish channel made from the end of April 2015 is still validate. Traders respect channel in daily chart and their actions are exactly predictable in last 3.5 month. RSI does not show any bearish signs and the most logical presence in this market is to remain buyer.