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20 May 2014
EUR/AUD: Correction takes rates to 1.47 resistance
FXStreet (Bali) - EUR/AUD is pressing against the 1.47 resistance area, visited in three different occasions since the latest impulsive sell off from May 13.
The rebound in EUR/AUD, off a 6-month low, follows the test of an important support area at 1.4550, level that converges with the double top seen last Sept/Oct 2013. In terms of risk events for the current Asian session, the RBA minutes, due at 1.30 GMT, and RBA Assist Gov Debelle speech at 3.15 GMT, will be the focus.
Technically, should the recovery extend beyond 1.47, the swing high from May 13 at 1.4750 looks like the next target for bulls ahead of 1.48, May 9 swing high. On the downside, the pair needs to re-take 1.4640/50 to expose 1.46 round number followed by a re-visit of the downtrend lows.
The rebound in EUR/AUD, off a 6-month low, follows the test of an important support area at 1.4550, level that converges with the double top seen last Sept/Oct 2013. In terms of risk events for the current Asian session, the RBA minutes, due at 1.30 GMT, and RBA Assist Gov Debelle speech at 3.15 GMT, will be the focus.
Technically, should the recovery extend beyond 1.47, the swing high from May 13 at 1.4750 looks like the next target for bulls ahead of 1.48, May 9 swing high. On the downside, the pair needs to re-take 1.4640/50 to expose 1.46 round number followed by a re-visit of the downtrend lows.