18 Feb 2014
EUR/AUD is recovering early losses
FXStreet (Moscow) - EUR/AUD spiked higher to 1.5196, but was spooked by strong offers and quickly dropped below the support of 1.5100 and set the intraday low at 1.5085. Currently the cross managed to return to the zone above 1.5100 to current level of 1.5160, as bearish momentum faded.
What ZEW has in store for EUR/AUD?
EUR/AUD is consolidating with downside bias on the longer scale. The 4-hour chart is showing a well-defined downside channel, but currently the cross is moving close to the lower band of Andrew’s fork at 1.5100 and this means that the upside correction to the middle of the fork is not out of the question. The cross was rather volatile after the RBA policy meeting minutes, but generally followed the broad band Aussie uptrend. The next important risk event is Europe German ZEW economic sentiment. It is forecasted to drop to 61.3 from 61.7 in January. The readings below forecast may trigger the Euro sell-off across the board as it will raise concerns about possible easing of ECB policy, namely about negative deposit rates. The key support is seen at 1.5100 and followed by 1.5080. The resistance comes at 1.5160. Once it is broken, the upside will accelerate to 1.5200.
What are today’s key EUR/AUD levels?
Today's central pivot point can be found at 1.5164, with the support at 1.5132, 1.5089 and 1.5057, with resistance above at 1.5207, 1.5239 and 1.5282. Hourly Moving Averages are bearish, with the 200SMA at 1.5167 and the daily 20EMA at 1.5264. Hourly RSI is neutral at 36.
What ZEW has in store for EUR/AUD?
EUR/AUD is consolidating with downside bias on the longer scale. The 4-hour chart is showing a well-defined downside channel, but currently the cross is moving close to the lower band of Andrew’s fork at 1.5100 and this means that the upside correction to the middle of the fork is not out of the question. The cross was rather volatile after the RBA policy meeting minutes, but generally followed the broad band Aussie uptrend. The next important risk event is Europe German ZEW economic sentiment. It is forecasted to drop to 61.3 from 61.7 in January. The readings below forecast may trigger the Euro sell-off across the board as it will raise concerns about possible easing of ECB policy, namely about negative deposit rates. The key support is seen at 1.5100 and followed by 1.5080. The resistance comes at 1.5160. Once it is broken, the upside will accelerate to 1.5200.
What are today’s key EUR/AUD levels?
Today's central pivot point can be found at 1.5164, with the support at 1.5132, 1.5089 and 1.5057, with resistance above at 1.5207, 1.5239 and 1.5282. Hourly Moving Averages are bearish, with the 200SMA at 1.5167 and the daily 20EMA at 1.5264. Hourly RSI is neutral at 36.