EUR/AUD: Having A Breather Before Taking A Further Plunge!
Good afternoon Traders and welcome back to EverythingFX. We had a phenomenal week last week, and we expect this week to be no different.
The Euro is currently trading at 1.57906 against the Austrailian Dollar during today's London session.
Looking at the weekly timeframe we can see price stalled with that double doji rejecting off our minor daily resistance of 1.60000. After selling off last week we came to hit our support exactly at 1.58000 which has been tested on several occasions. Dropping down to the daily timeframe we can see price has since gapped down.
Taking a look at the 4-hour (illustrated on the image), we can see price is currently pulling back looking to potentially close the gap which formed upon market open. Where to next you may be asking, I will personally be looking for a nice high re-test of the green highlighted region of 1.58700 before taking this pair lower to our next level of dynamic support of 1.57000 which provides us with a good 170 PIP trade to the downside with a good risk to reward. If we get a break of the ascending trendline my next level of support is 1.55000 which would provide a good swing point for the pair. What would invalidate this for me would be a break of previous support now turned resistance at 1.59300.
Taking a look at fundamentals we had European inflation data that came out this morning at 1.4% with a consensus of 1.5% which could mean further downside for the Euro. We have the RBA Interest Rate decision tomorrow morning where we will be looking for comments from Gov Lowe as to where we could see the Austrailian Dollar head next. Stay tuned to our market news section for the last news as well as our Twitter Feed for rapid comments and economic news.