31 Jul 2013
EUR/AUD upside momentum mostly unaffected by Aussie data
FXstreet.com (Barcelona) - The release of Australian higher-than-expected private sector credit Wednesday came and went without really moving the needle on the EUR/AUD cross.
EUR/AUD trading only slightly lower than elevated pre-data levels
The EUR/AUD cross dribbled down a few ticks to 1.4672 after modestly higher-than-expected private sector credit data out of Australia Wednesday. The data release is being viewed by traders as a blip on the screen versus the macro bearish picture for the Aussie Dollar. Seemingly, shy of a major policy shift by the RBA, the only way we see a halt to the upside momentum in the EUR/AUD cross is if we see a deterioration in economic growth in Europe. While that doesn’t seem to be anticipated by many analysts currently, traders will have key data from Europe to digest in just a few hours.
EUR/AUD technical outlook
Not unlike most of the other Australian pairs, the EUR/AUD is sporting extreme readings due to the recent Aussie weakness. In this case, the EUR/AUD is very overbought and due for a corrective pullback say technicians. First support comes in at the previous high at 1.4477 and is followed up on the downside by last Friday’s pivot low at 1.4290. Resistance for EUR/AUD comes in at today’s high of 1.4713 and is backed up by the projected upside target (according to Elliott Wave technicians) of 1.4891.
EUR/AUD trading only slightly lower than elevated pre-data levels
The EUR/AUD cross dribbled down a few ticks to 1.4672 after modestly higher-than-expected private sector credit data out of Australia Wednesday. The data release is being viewed by traders as a blip on the screen versus the macro bearish picture for the Aussie Dollar. Seemingly, shy of a major policy shift by the RBA, the only way we see a halt to the upside momentum in the EUR/AUD cross is if we see a deterioration in economic growth in Europe. While that doesn’t seem to be anticipated by many analysts currently, traders will have key data from Europe to digest in just a few hours.
EUR/AUD technical outlook
Not unlike most of the other Australian pairs, the EUR/AUD is sporting extreme readings due to the recent Aussie weakness. In this case, the EUR/AUD is very overbought and due for a corrective pullback say technicians. First support comes in at the previous high at 1.4477 and is followed up on the downside by last Friday’s pivot low at 1.4290. Resistance for EUR/AUD comes in at today’s high of 1.4713 and is backed up by the projected upside target (according to Elliott Wave technicians) of 1.4891.