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27 Jan 2014
EUR/AUD is under selling pressure; 1.5700 is in sight
FXstreet.com (Moscow) - EUR/AUD consolidated quietly in a narrow range early in the morning as the Australia is closed today; the cross grew to the intraday high of 1.5770 early in the morning, but retraced gains and moved to 1.5710. Now the support of 1.5700 is in sight.
EUR/AUD needs a time-out, but the bulls are still in control
It looks like EUR/AUD resumed its long-term bullish trend as the cross gained nearly 300 pips and ended the previous week above the resistance of 1.5700. Positive Euroarea data coupled with AUD weakening across the board are the underlying factors behind the move. As the fundamental picture is not going to change in the nearest future, we believe that the cross will be upside biased. As the Eurozone publishes the IFO indicators today, it will be interesting to see whether they will confirm or clarify the mixed ZEW data. The EUR/AUD may reverse some gains on worse than forecasted statistics, though we do not expect much of a reaction to these numbers. Keep an eye at 1.5630. This level is likely to cap the downside, though the nearest support is still 1.5700. The resistance comes at 1.5754 and followed by 1.5782 (this is the top of short-term horizontal channel).
What are today’s key EUR/AUD levels?
Today's central pivot point can be found at 1.5719, wit658, with resistance above at 1.5841, 1.5957 and 1.6079. Hourly Moving Averages are mostly bullish, with the 200SMA at 1.5425 and the daily 20EMA at 1.5374. Hourly RSI is neutral at 57.
EUR/AUD needs a time-out, but the bulls are still in control
It looks like EUR/AUD resumed its long-term bullish trend as the cross gained nearly 300 pips and ended the previous week above the resistance of 1.5700. Positive Euroarea data coupled with AUD weakening across the board are the underlying factors behind the move. As the fundamental picture is not going to change in the nearest future, we believe that the cross will be upside biased. As the Eurozone publishes the IFO indicators today, it will be interesting to see whether they will confirm or clarify the mixed ZEW data. The EUR/AUD may reverse some gains on worse than forecasted statistics, though we do not expect much of a reaction to these numbers. Keep an eye at 1.5630. This level is likely to cap the downside, though the nearest support is still 1.5700. The resistance comes at 1.5754 and followed by 1.5782 (this is the top of short-term horizontal channel).
What are today’s key EUR/AUD levels?
Today's central pivot point can be found at 1.5719, wit658, with resistance above at 1.5841, 1.5957 and 1.6079. Hourly Moving Averages are mostly bullish, with the 200SMA at 1.5425 and the daily 20EMA at 1.5374. Hourly RSI is neutral at 57.