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31 Dec 2013
EUR/AUD on the verge of testing ST “correction support” at 1.5432
FXstreet.com (Barcelona) - EUR/AUD is pulling back short-term after Aussie credit data came out slightly bullish – the first bullish piece of Aussie data in quite a while. The first test for the bulls is “correction support” at 1.5432.
EUR/AUD traders to rely on technicals and momentum until Thursday data releases
EUR/AUD traders will be reacting only to technical factors and momentum (if any) until the Thursday data flow starts up in Australia. The scheduled data releases Thursday and Friday include:
• Thursday: Aussie Performance of Manufacturing Index; German and European Manufacturing PMI data
• Friday: EuroZone CPI data.
Technical outlook for EUR/AUD
Technicians say EUR/AUD topped out at the 1.5578 level last Wednesday and could be in the early stages of a macro pullback to targets starting at 1.5000 and possibly continuing to 1.4050. Resistance above 1.5578 comes in at 1.5600. Shorter-term, support comes in at 1.5432 – the 100% Fibonacci price projection line for what could be an “abc” downside correction. Obviously, if the lower targets mentioned are to come into play, 1.5432 will be no match for the sellers.
EUR/AUD traders to rely on technicals and momentum until Thursday data releases
EUR/AUD traders will be reacting only to technical factors and momentum (if any) until the Thursday data flow starts up in Australia. The scheduled data releases Thursday and Friday include:
• Thursday: Aussie Performance of Manufacturing Index; German and European Manufacturing PMI data
• Friday: EuroZone CPI data.
Technical outlook for EUR/AUD
Technicians say EUR/AUD topped out at the 1.5578 level last Wednesday and could be in the early stages of a macro pullback to targets starting at 1.5000 and possibly continuing to 1.4050. Resistance above 1.5578 comes in at 1.5600. Shorter-term, support comes in at 1.5432 – the 100% Fibonacci price projection line for what could be an “abc” downside correction. Obviously, if the lower targets mentioned are to come into play, 1.5432 will be no match for the sellers.