3 Sep 2013
EUR/AUD rebounds off of 1.4617 following soft Aussie retail numbers
FXstreet.com (Barcelona) - On the verge of a major technical breakdown, EUR/AUD caught a major bid following weaker-than-expected Australian retail sales.
EUR/AUD got a ST reprieve. Will RBA / European data later Tuesday help or hurt the cross?
The weak Aussie retail sales data early Tuesday took the EUR/AUD from technical breakdown mode to showing signs of life just above key support at 1.4617. The data ran counter to what we saw Monday when Australia reported a huge blowout number in their building permits data.
At 4:30 GMT, traders will get the RBA’s interest rate decision – which may end up being a non-event if analysts’ predictions are accurate – as well as EuroZone PPI later in the day.
Technical outlook for EUR/AUD
Technicians were previously calling for a deeper correction in EUR/AUD – possibly down to 1.4352 and/or points below. As long as the 1.4617 “correction support” holds, the deeper correction scenario is obviously off the table. Resistance comes in at 1.4694 – which was just tested in the last few minutes. A 10-minute close above that level will lead to a test of the line in the sand for EUR/AUD bears at 1.4717.
EUR/AUD got a ST reprieve. Will RBA / European data later Tuesday help or hurt the cross?
The weak Aussie retail sales data early Tuesday took the EUR/AUD from technical breakdown mode to showing signs of life just above key support at 1.4617. The data ran counter to what we saw Monday when Australia reported a huge blowout number in their building permits data.
At 4:30 GMT, traders will get the RBA’s interest rate decision – which may end up being a non-event if analysts’ predictions are accurate – as well as EuroZone PPI later in the day.
Technical outlook for EUR/AUD
Technicians were previously calling for a deeper correction in EUR/AUD – possibly down to 1.4352 and/or points below. As long as the 1.4617 “correction support” holds, the deeper correction scenario is obviously off the table. Resistance comes in at 1.4694 – which was just tested in the last few minutes. A 10-minute close above that level will lead to a test of the line in the sand for EUR/AUD bears at 1.4717.