3 Sep 2013
EUR/AUD finds support after 12-day lows bounce
FXstreet.com (Chicago) - EUR/AUD dipped below immediate support to reach 1.4644 12-day lows and rebound shortly thereafter. After reaching 1.4703 zone, the pair succumbed to bearish pressure as the Aussie’s rally fueled by better-than-expected housing data and Chinese manufacturing results extending despite better-than-expected European results.
Is Europe on the right track?
In Europe, a series of manufacturing results outperformed most expectations. The Italian Markit manufacturing PMI was 51.3 vs. previous 50.4 and an expected 50.8. The French PMI was 49.7, matching past results and projections. The German PMI was 51.8 vs. expected 52.0 estimates and past 50.7 results. The Greek PMI was 48.7 vs. prior 47.0 while the Euro-zone PMI was 51.4 vs. expected 51.3 and past 50.3. In a few hours, Australia will release current account balance data along the RBA interest rate decision. The Aussie seems to be favored by positive Chinese manufacturing results. On the other hand, Europe has the producer price index results due at 9:00 GMT.
EUR/AUD Technical Levels – bearish momentum extends
Technically speaking, the pair extends downward trending line after 1.4644 plunge. At 1.4678, the pair navigates between supports at 1.4649 (July 29th highs), 1.4624 (August 15th highs) ahead of 1.4595 (August 13th highs) and resistances at 1.4678 (August 8th lows), 1.4716 (August 2nd lows) followed by 1.4749 (August 23rd lows). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and remains trading above the EMA20.
Is Europe on the right track?
In Europe, a series of manufacturing results outperformed most expectations. The Italian Markit manufacturing PMI was 51.3 vs. previous 50.4 and an expected 50.8. The French PMI was 49.7, matching past results and projections. The German PMI was 51.8 vs. expected 52.0 estimates and past 50.7 results. The Greek PMI was 48.7 vs. prior 47.0 while the Euro-zone PMI was 51.4 vs. expected 51.3 and past 50.3. In a few hours, Australia will release current account balance data along the RBA interest rate decision. The Aussie seems to be favored by positive Chinese manufacturing results. On the other hand, Europe has the producer price index results due at 9:00 GMT.
EUR/AUD Technical Levels – bearish momentum extends
Technically speaking, the pair extends downward trending line after 1.4644 plunge. At 1.4678, the pair navigates between supports at 1.4649 (July 29th highs), 1.4624 (August 15th highs) ahead of 1.4595 (August 13th highs) and resistances at 1.4678 (August 8th lows), 1.4716 (August 2nd lows) followed by 1.4749 (August 23rd lows). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis and remains trading above the EMA20.