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15 Aug 2013
EUR/AUD hugging lower edge of what may be a short-term trading range at 1.4525
FXstreet.com (Barcelona) - After months of nearly unabated upside, the EUR/AUD has pulled sharply back off the 8/5 highs at 1.4933. This move lower may nearly be over and a bounce back up to near the highs should be next up for the cross.
EUR/AUD pulling back hard on the oversold Aussie rally
With Chinese equities and all of the neighboring sovereign equities and currencies all seeing very sharp rallies recently, the EUR/AUD has been dropping like a rock off of the 8/5 high of 1.4525. Not even a consistently positive news flow out of Europe recently could counter-balance the sudden strength we saw out of the China trade (of which the Aussie Dollar is a part).
It’s an off day for most of Europe due to Assumption Day, but Australia will be releasing its monthly inflation data at 01:00 GMT – which may clearly have some influence over the EUR/AUD in the short-term.
Technical outlook for EUR/AUD
Technicians are calling for some buying to come in for the EUR/AUD down here near support at the 7/12 close of 1.4440. From there, they say a move back up to near the highs 1.4933 may very likely occur. A break of support will almost certainly lead to a test of 1.4165 while there is no set resistance above 1.4933 although some projections have 1.5120 as the next possible resistance on a breakout.
EUR/AUD pulling back hard on the oversold Aussie rally
With Chinese equities and all of the neighboring sovereign equities and currencies all seeing very sharp rallies recently, the EUR/AUD has been dropping like a rock off of the 8/5 high of 1.4525. Not even a consistently positive news flow out of Europe recently could counter-balance the sudden strength we saw out of the China trade (of which the Aussie Dollar is a part).
It’s an off day for most of Europe due to Assumption Day, but Australia will be releasing its monthly inflation data at 01:00 GMT – which may clearly have some influence over the EUR/AUD in the short-term.
Technical outlook for EUR/AUD
Technicians are calling for some buying to come in for the EUR/AUD down here near support at the 7/12 close of 1.4440. From there, they say a move back up to near the highs 1.4933 may very likely occur. A break of support will almost certainly lead to a test of 1.4165 while there is no set resistance above 1.4933 although some projections have 1.5120 as the next possible resistance on a breakout.