Back
1 Nov 2013
EUR/AUD sharply lower due to the single currency weakness, solid Australia data
FXstreet.com (Athens) – The EUR/AUD is under severe pressure since the kick off trading session in Wellington, mainly due to the fact that after very dismal yesterday’s Euro zone data, a heavily growing number of market participants are seeking for further easing on behalf of ECB the next months.
EUR/AUD looks the floor as traders after the very soft EZ data call for more ECB easing
The EUR/AUD has been under severe pressure the last couple of days; elaborating on the pair has approximately lost from 1.4478 (Thursday’s opening) up to now (1.4300), 178 pips. Market investors should not be taken aback by that development; first of all, it is mainly the single currency weakness that dragged down the pair on Friday. Traders all over the globe had priced in that Euro zone was again in a solid track, but after yesterday’s released data we witnessed that inflation is muted in Euro land and unemployment makes new record high month by month. Thus, analysts sit on the fence awaiting for much more easing from ECB the forthcoming months. Elsewhere, the solid data that were released in Australia has shelved thoughts of any RBA easing, at least for the time being.
Technical Aspects on the EUR/AUD
At the time of writing, the pair is trading at 1.4300, down 0.44%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15-minutes timeframe chart. Daily pivot point support can be found at 1.4263, 1.4228, 1.4192, and resistance at 1.4438, 1.4475 and 1.4511, respectively. We should point out that technically the cross is under major pressure since the opening due to broad Euro long squeeze. What’s more, the cross it is not far away from the 61.8% Fib retracement to the 1.4258 levels, but to get there should break clearly on a daily close the supports as of the 1.4305 (20 DMA), as well as the 1.4310 (which is the 50% of the October rise). Upwards, the cross should firstly overcome the earlier high as of 1.4382 to move on the upper level
EUR/AUD looks the floor as traders after the very soft EZ data call for more ECB easing
The EUR/AUD has been under severe pressure the last couple of days; elaborating on the pair has approximately lost from 1.4478 (Thursday’s opening) up to now (1.4300), 178 pips. Market investors should not be taken aback by that development; first of all, it is mainly the single currency weakness that dragged down the pair on Friday. Traders all over the globe had priced in that Euro zone was again in a solid track, but after yesterday’s released data we witnessed that inflation is muted in Euro land and unemployment makes new record high month by month. Thus, analysts sit on the fence awaiting for much more easing from ECB the forthcoming months. Elsewhere, the solid data that were released in Australia has shelved thoughts of any RBA easing, at least for the time being.
Technical Aspects on the EUR/AUD
At the time of writing, the pair is trading at 1.4300, down 0.44%. The FXstreet.com Trend Index shows the pair to be slightly bullish in the 15-minutes timeframe chart. Daily pivot point support can be found at 1.4263, 1.4228, 1.4192, and resistance at 1.4438, 1.4475 and 1.4511, respectively. We should point out that technically the cross is under major pressure since the opening due to broad Euro long squeeze. What’s more, the cross it is not far away from the 61.8% Fib retracement to the 1.4258 levels, but to get there should break clearly on a daily close the supports as of the 1.4305 (20 DMA), as well as the 1.4310 (which is the 50% of the October rise). Upwards, the cross should firstly overcome the earlier high as of 1.4382 to move on the upper level