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25 Jul 2014
EUR/AUD bulls are better poised above 1.4300 resistance
FXStreet (Moscow) - EUR/AUD resumed the upside and broke above 1.4300 resistance after a short period of consolidation in a narrow range.
Bottomed out?
The daily picture of EUR/AUD suggests that the cross may have bottomed out at 1.4203 (this is the lowest level since the beginning of November 2013) after its recent downside from 1.4500 handle, but wee need to see a definitely positive close on Friday to get a confirmation. EUR/AUD bullish developments in Asia come in line with AUD/USD downside pressure as their mostly technical by nature. From the fundamental point of view, later during the day the cross might be influenced by German IFO numbers. Unexpectedly optimistic flash PMI reports published yesterday sowed a seed of hope for more sustained European recovery. If today’s IFO supports this view, EUR might reverse some losses, though the upside of the cross is likely to be limited by 1.4353 (Wednesday’s high).
What price levels and patterns have to be considered?
Current price is 1.4315, with resistance ahead at 1.4323 (Daily High), 1.4329 (Hourly 100 SMA), 1.4332 (Weekly Classic S1), 1.4337 (Daily Classic R1) and 1.4378 (Daily Classic R2).
Support below can be found at 1.4312 (Yesterday's High), 1.4293 (Daily Open), 1.4290 (Hourly 20 EMA), 1.4287 (Daily Low) and 1.4270 (Daily Classic PP).
Bottomed out?
The daily picture of EUR/AUD suggests that the cross may have bottomed out at 1.4203 (this is the lowest level since the beginning of November 2013) after its recent downside from 1.4500 handle, but wee need to see a definitely positive close on Friday to get a confirmation. EUR/AUD bullish developments in Asia come in line with AUD/USD downside pressure as their mostly technical by nature. From the fundamental point of view, later during the day the cross might be influenced by German IFO numbers. Unexpectedly optimistic flash PMI reports published yesterday sowed a seed of hope for more sustained European recovery. If today’s IFO supports this view, EUR might reverse some losses, though the upside of the cross is likely to be limited by 1.4353 (Wednesday’s high).
What price levels and patterns have to be considered?
Current price is 1.4315, with resistance ahead at 1.4323 (Daily High), 1.4329 (Hourly 100 SMA), 1.4332 (Weekly Classic S1), 1.4337 (Daily Classic R1) and 1.4378 (Daily Classic R2).
Support below can be found at 1.4312 (Yesterday's High), 1.4293 (Daily Open), 1.4290 (Hourly 20 EMA), 1.4287 (Daily Low) and 1.4270 (Daily Classic PP).