EUR/AUD finds support above 1.5300

FXStreet (Córdoba) - FXStreet (Córdoba) - The EUR/AUD finished sharply lower on Thursday, at 1.5350, ending a 4-day rally. Employment data from Australia and dovish comments by Mario Draghi weakened the pair.

Technical outlook for the EUR/AUD

On Wednesday, after rising more than 300 pips since last Thursday the EUR/AUD gave signals of exhaustion on Wednesday with a rejection above 1.5500. On Thursday with the release of jobs data in Australia, the pair plummeted a hundred pips in a few minutes, bottoming at 1.5315.

After a short-lived recovery that was capped by 1.5410 the EUR/USD returned to daily lows but once again found support around 1.5310, from where it bounced to close at 1.5340, with a decline of 115 pips for the day.

Despite the retreat the pair still holds a bullish bias, as it stays above a daily uptrend line that currently stands at 1.5250.

AUD relationship with Aus bonds and US T-bills key

Strategists at TD Securities explained that a relationship worth highlighting is the AUD compared with the spread between Australian bonds and US Treasuries.
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