EUR/AUD has been quite volatile with corrective moves below the 1.5750 resistance area from where the price is expected to push lower in the coming days. AUD failed to dominate EUR as expected because of downbeat economic reports published recently. As a result, the market sentiment is in favor of EUR. The mixed economic reports from the eusozone helped EUR to sustain gains against AUD as Australia presented worse economic data. Today, Germany’s Prelim GDP report is going to be published which is expected to decrease to 0.6% from the previous value of 0.8%, Germany’s Final CPI is expected to be unchanged at -0.7%, Italy’s Prelim GDP is expected to be unchanged at 0.4%, Flash GDP is expected to be unchanged at 0.6%, and Industrial Production is expected to decrease to 0.1% from the previous value of 1.0%. The indecisive forecast for EUR is expected to lower the confidence of market players that might lead to certain correction and shorter pullbacks along the way. On the AUD side, today Westpac Consumer Sentiment report was published with a decrease to -2.3% from the previous value of 1.8% ahead of the upcoming high impact economic reports later this week. Among them are Employment Change report which is expected to decrease to 15.3k from the previous figure of 34.7k and Unemployment Rate is expected to be unchanged at 5.5%. The forecasts of the Employment tomorrow which is expected to have high impact on the market movement has odds against AUD that might lead to further gains on the EUR side in the coming days. To sum up, the market is still quite indecisive but any negative reading in Australia’s reports in the coming days may lead to a bullish breakout which will result in impulsive EUR gains in the short term.
Now let us look at the technical view. The price is currently holding below 1.5750 resistance area from where the price is expected to proceed lower towards the dynamic level of 20 EMA or much lower towards 1.55 support area. The price action has been quite volatile with impulsive bullish pressure and rejection within certain period of time that might lead to further indecision in the market. As the price remains below 1.5750 area with a daily close, the bearish bias is expected to continue further. Moreover, a daily close above 1.5750 will cause a change in the trend that will open the higher doorway towards 1.60 in the future.
The material has been provided by InstaForex Company – www.instaforex.com