The Euro traded lower against the Australian dollar during this past week. However, this week the EUR/AUD pair has started on a positive note. The pair was seen trading a touch higher during today’s London session. There is a bullish trend line forming on the hourly timeframe for the pair. After finding support around the trend line support area at 1.4358, the pair managed to climb towards the 100 simple moving average (1H). However, it is currently struggling to break the mentioned SMA, and consolidating just below the 1.4425 level.
It is quite possible that the EUR/AUD pair may gain bids in the short term, and manage to break the 100 SMA. If it trades higher, then a move towards the 61.8% Fibonacci retracement level of the last drop from the 1.4462 high to the 1.4385 low is feasible. Any further strength might take the pair towards the last swing high of 1.4460. It is important to note that the mentioned Fib level also coincides with a bearish trend line on the hourly time frame, which can be seen on the chart. Sellers may appear around the stated resistance zone.
The RSI on the hourly time frame has managed to clear the 50 level, which is a positive sign. However, the 100 SMA and bearish trend line might continue to present offers in the short term.
Euro Zone CPI data:
Earlier, the Euro zone inflation data was published by the Eurostat. The outcome was in line with the forecast, as the euro area annual inflation was confirmed at 0.5%. This resulted in a small rise in the euro.
- IKOFX Technical Team
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