EUR/AUD Forecast – Can Euro Move Into Bullish Zone Vs Aussie Dollar?

EUR/AUD Forecast – Can Euro Move Into Bullish Zone Vs Aussie Dollar?

  • – The Euro moved down this past week and traded as low as 1.4799 against the Aussie Dollar.
  • – The EUR/AUD pair is currently recovering and attempting a break above a bearish trend line at 1.4870 on the hourly chart.
  • – Recently in the Euro Zone, the German wholesale price Index for May 2017 released by the Statistisches Bundesamt Deutschland posted a decline of 0.7% (MoM).

 

Germany’s Wholesale Price Index

Recently in the Euro Zone, the German wholesale price index for May 2017 was released by the Statistisches Bundesamt Deutschland. The market was positioned for the index to increase by 0.2%, compared with the previous month.

 

However, the actual result was a lot lower, as there was a decline of 0.7%. In terms of the yearly change, the market was aligned for an increase of 3.6% in order in May 2017, but actual was +3.1%. In an another release, the Spanish Consumer Price Index for May 2017 published by the National Institute of Statistics posted a decline of 0.1% (MoM), which was in line with the market forecast.

 

If the EUR/AUD pair manages to close above the 1.4875 level, there are chances of further gains towards 1.4950.

 

EUR/AUD Technical Analysis

The Euro declined heavily this past week and traded a pip below the 1.4800 handle against the Aussie Dollar to form a low at 1.4799. The EUR/AUD pair after forming a support near 1.4800 started a recovery and moved above 1.4820.

 

EUR/AUD Technical Analysis Euro Aussie Dollar

 

Later, the pair was able to break the 23.6% Fib retracement level of the last decline from the 1.4948 high to 1.4799 low. At present, the pair is attempting a break above a bearish trend line at 1.4870 on the hourly chart and the 100 simple moving average.

 

The Euro bulls need to break the trend line resistance at 1.4870 and the 50% Fib retracement level of the last decline from the 1.4948 high to 1.4799 low in order to gain traction for an upside move towards the 1.4940-50 levels. On the downside, the pair remains supported near 1.4800, and a connecting support trend line at 1.4780.

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