Fundamental Analysis of EUR/AUD for October 13, 2017
EUR/AUD recently broke above the 1.5050-75 support area which is being retested currently. EUR has been quite strong in light of economic reports that has led to further gains of EUR against AUD. Recently, amid positive results of Australia’s economic reports some bearish impulsive pressure can be observed in the pair. Today, German Final CPI report was published unchanged as expected at 0.1% but it could not quite manage to provide any positive effect for the currency against AUD. Yesterday, ECB President Draghi spoke about short-term interest decisions and future monetary policies. His speech expressed the neutral rhetoric and resulted in shifting the market sentiment to further bearish. On the AUD side, today RBA Financial Stability Review was held where the stability of the Australian economy was discussed along with future monetary policies. The hawkish stance provided a push to gain further against EUR today. As for the current scenario, AUD has been quite stronger in comparison to EUR, the overall trend is still bullish and in favor of EUR. In the coming days, if EUR comes up with positive economic reports we might observe a further bullish movement in this pair.
Now let us look at the technical chart. The price is currently residing above the support area of 1.5050-75. The price has recently broken above the level as resistance and currently retesting it before pushing higher towards 1.5250 resistance area in the coming days. As the price remains above the support area of 1.5050-75 and dynamic level of 20 EMA with a daily close, the bullish bias is expected to continue further.
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