6 Sep 2013
EUR/AUD stalled at 1.4376 5-week depths
FXstreet.com (Chicago) - EUR/AUD accumulates 0.12% losses so far after Draghi’s dovish comments on Euro-zone situation in the Euro-zone and at the start of the Japanese trading session. In Australia, the country prepares for the outcome of major elections with Labor Prime Minister Kevin Rudd facing opposition Liberal-National coalition Tony Abbott this weekend.
Subdued Europe, Australian elections
Australia just released its AiG performance construction index for August at 43.7 vs. past 44.1. The tension may unleash once a winner is declared. In the meantime, rumors run on Rudd’s end of mandate due to not so successful tumultuous years in power. In Europe, dovish comments by ECB’s Draghi sent the euro down across most currencies after announcements during the press conference post ECB decision to maintain interest rates at 0.5% stating that the currency was “subdued” similarly to “subdued credit dynamics” for the midterm.
EUR/AUD Technical Levels
Price action reveals a primary trend pointing down after the double top pattern (August 5th highs and August 28th highs) that was completed subsequent to the violation of an upward trendline that ended when the pair fell below 1.50 zone. The breakdown movement suffered yesterday remains consolidated by sideways trading throughout Thursday’s session despite a short-lived attempt to erase losses that ended up flattened. A break below immediate support at 1.4344 (September 3rd lows) may be the confirmation of a reversal H&S pattern. Although bears exercise high pressure on the bulls, the pair has been able to find grounds with following supports at 1.4292 (July 25th lows) and 1.4232 (July 8th lows). On the upside, resistances are aligned at 1.4417 (July 15th highs), 1.4460 (July 25th highs) ahead of 1.4510 (September 2nd lows). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis.
Subdued Europe, Australian elections
Australia just released its AiG performance construction index for August at 43.7 vs. past 44.1. The tension may unleash once a winner is declared. In the meantime, rumors run on Rudd’s end of mandate due to not so successful tumultuous years in power. In Europe, dovish comments by ECB’s Draghi sent the euro down across most currencies after announcements during the press conference post ECB decision to maintain interest rates at 0.5% stating that the currency was “subdued” similarly to “subdued credit dynamics” for the midterm.
EUR/AUD Technical Levels
Price action reveals a primary trend pointing down after the double top pattern (August 5th highs and August 28th highs) that was completed subsequent to the violation of an upward trendline that ended when the pair fell below 1.50 zone. The breakdown movement suffered yesterday remains consolidated by sideways trading throughout Thursday’s session despite a short-lived attempt to erase losses that ended up flattened. A break below immediate support at 1.4344 (September 3rd lows) may be the confirmation of a reversal H&S pattern. Although bears exercise high pressure on the bulls, the pair has been able to find grounds with following supports at 1.4292 (July 25th lows) and 1.4232 (July 8th lows). On the upside, resistances are aligned at 1.4417 (July 15th highs), 1.4460 (July 25th highs) ahead of 1.4510 (September 2nd lows). According to the FXstreet.com trend index, the pair is slightly bullish on one-hour timeframe analysis.