7 Apr 2014
EUR/AUD keeps bearish outlook
FXStreet (Bali) - EUR/AUD is trading around the 1.4750 area, with the exchange rate still exposed to a heavy undertone.
The expectations for further easing by the ECB amid low inflation numbers in the Eurozone, coupled with a tentative economic recovery in Australia within a context of upward price pressures, has caused a divergence in how market participants perceive future monetary policies between the ECB and the RBA, translated on a consistent decline in the rate ever since topping at 1.55 last April 13.
Technically, Jim Langlands from FXCharts, notes: "The Aud crosses all have much the same look in that they are carving out a head/shoulder formation and EurAud is no different. The dailies and weeklies are pointing towards further declines and the week closed below the 200 DMA (1.4800), currently sitting right above important Fibo support at 1.4735 (61.8% of 1.4050/1.5832) a break of which would suggest a run towards 1.4470 (76.4%)."
The expectations for further easing by the ECB amid low inflation numbers in the Eurozone, coupled with a tentative economic recovery in Australia within a context of upward price pressures, has caused a divergence in how market participants perceive future monetary policies between the ECB and the RBA, translated on a consistent decline in the rate ever since topping at 1.55 last April 13.
Technically, Jim Langlands from FXCharts, notes: "The Aud crosses all have much the same look in that they are carving out a head/shoulder formation and EurAud is no different. The dailies and weeklies are pointing towards further declines and the week closed below the 200 DMA (1.4800), currently sitting right above important Fibo support at 1.4735 (61.8% of 1.4050/1.5832) a break of which would suggest a run towards 1.4470 (76.4%)."