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  • EUR/AUD Analysis – Euro To Aussie Dollar Heading Towards Support

    EUR/AUD Analysis – Euro To Aussie Dollar Heading Towards Support

    • – The Euro declined heavily against the Aussie dollar recently, and moved below the 1.4300 support area.
    • – There are two bearish trend lines on the 4-hours chart of EUR/AUD, acting as a resistance on the upside near 1.4260-1.4300.
    • – Earlier today, the German wholesale price Index released by the Statistisches Bundesamt Deutschland posted an increase of 1.2% in Dec 2016, compared with Nov 2016.

     

    German Wholesale Price Index

    There was no major economic release in the Euro Area today. The only one to note was the German wholesale price Index by the Statistisches Bundesamt Deutschland. The market was not expecting a rise of more than 0.5% in Dec 2016, compared with Nov 2016.

     

    However, the result was better than the forecast, as there was a rise of 1.2% in the German wholesale price Index. Looking at the yearly change, there was a 2.6% rise in the index in Dec 2016, compared with the same month a year ago. The report also added that the “index of selling prices in wholesale trade was down 1.0% on an annual average in 2016 from the preceding year”.

     

    Overall, the outcome was above the expectation, and it gives a chance to the Euro buyers to take the EUR/AUD higher for a recover towards 1.4220.

     

    EUR/AUD Technical Analysis

    The Euro faced a lot of selling pressure against the Aussie dollar during the past few days, as it moved below a couple of important support levels like 1.4400 and 1.4300. The EUR/AUD pair currently looks like in a downtrend with two bearish trend line as resistance on the 4-hours chart near 1.4260-1.4300.

     

    EUR/AUD Analysis – Euro To Aussie Dollar

     

    The pair already broke the 76.4% Fib retracement level of the last wave from the 1.4090 low to 1.4720 high. So, there is a chance of a full test of the last swing low near 1.4100.

     

    The highlighted support area is very important. It acted as a barrier earlier, and may produce a bounce once again from 1.4100. The H4 RSI has also reached the oversold readings, which means the EUR/AUD pair may sooner or later attempt to recover.

     

    On the upside, an initial resistance is near 1.4200, followed by the highlighted bearish trend lines.

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  • EUR/GBP – Is This Bearish Break For Euro To Pound?

    EUR/GBP – Is This Bearish Break For Euro To Pound?

    • – The Euro after trading as high as 0.8667 against the British Pound found sellers, and moved down.
    • – The EUR/GBP moved down sharply, and broke a major support trend line at 0.8520 on the 4-hours chart.
    • – The Euro Zone Manufacturing Purchasing Managers Index (PMI) released by the Markit Economics posted no change from the last reading of 54.9 in Dec 2016.

     

    Euro Zone Manufacturing PMI

    The markets are mostly closed today, so there is no major release. In the Euro Zone, the Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics.

     

    The market was expecting no change from the last reading of 54.9 in Dec 2016. The result was in line with the forecast, as there was no increase from the last reading of 54.9. Commenting on the report, the Chief Business Economist at HIS, Chris Williamson, stated “Eurozone manufacturers are entering 2017 on a strong footing, having ended 2016 with a surge in production. Policymakers will be doubly-pleased to see the manufacturing sector’s improved outlook being accompanied by rising price pressures”.

     

     

    There was no negative market sentiment for the Euro, so there is a chance that the shared currency may bounce back from the 0.8500 support against the British Pound.

     

    EUR/GBP Technical Analysis

    The Euro made a nice attempt to break the 0.8680 barrier against the British Pound, but failed near 0.8660. The EUR/GBP pair started moving down, and broke the 23.6% Fib retracement level of the last leg from the 0.8331 low to 0.8667 high.

     

    EUR/GBP Technical Analysis Euro Pound

     

    The pair recently traded below a major bullish trend line at 0.8520 on the 4-hours chart. However, the pair is currently finding bids near the 50% Fib retracement level of the last leg from the 0.8331 low to 0.8667 high.

     

    So, there is a chance that the recent break is false, and the pair may bounce back from the 0.8500 support. The EUR/GBP pair is also above the 100 simple moving average (H4 chart), which is a positive sign. If at all there are more declines, then the pair can test the 0.8460 support area in the short term. The H4 RSI has moved below the 50 level, calling for a bearish break.

     

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