- – The Euro opened with a gap up, considering bullish sentiment building around French Elections.
- – The EUR/AUD opened near 1.4440, and then started forming a descending channel on the hourly chart.
- – Today, the German IFO Expectations for April 2017 released by the CESifo Group posted a decline from 105.7 to 105.2.
German IFO Expectations
Today in the Euro Zone, the German IFO Expectations for April 2017 was released by the CESifo Group. The market was positioned for an increase of from the last reading of 105.7 to 106.00 in April 2017.
However, the result was on the lower side, as there was a decline in the German IFO Expectations from 105.7 to 105.2. On the other hand, the IFO Current Assessment index posted an increase from the last revised reading of 119.5 to 121.1. The last but not the least, the German business sentiment index posted a rise from the previous revised reading of 112.4 to 112.9 in April 2017. It was high than the forecast of 112.5.
So, there is overall positive sentiment for the EUR/AUD pair, which could lead it higher towards the 1.4400 level.
EUR/AUD Technical Analysis
The Euro gained heavily today, as the market was bullish on the French election results. All the Euro pairs opened with a gap up, including EUR/AUD, trading above the 1.4400 level. The pair traded as high as 1.4439 from where a correction was initiated.
Later, the pair traded lower and moved below the 23.6% Fib retracement level of the last wave from the 1.4167 low to 1.4439 high. At the moment, the pair has formed a descending channel on the hourly chart with resistance at 1.4375.
The pair is bouncing from the 38.2% Fib retracement level of the last wave from the 1.4167 low to 1.4439 high. However, it needs to break the channel resistance at 1.4375 in order to challenge the 1.4400 level once again. On the downside, the 1.4300 level is the most important support, followed by the 1.4280 area. At the moment, there looks no possibility of the EUR/AUD pair closing the opening gap at 1.4200 in the near term.Tags: Aussie dollar, EUR/AUD Technical Analysis, Euro