Source: Forex Analysis
EUR/AUD has recently cleared below the 1.5750 support area with a daily close which is expected to be retested before the price continues its bearish pressure with target towards the 1.52 support area in the coming days. The recent struggle of EUR with the worse economic reports lead AUD to gain certain momentum even with the mixed economic reports results, published recently.
AUD Employment Change report was recently published with a significant increase to 22.6k from the previous negative figure of -0.7k which was expected to be at 19.8k and Unemployment Rate increased to 5.6% from the previous value of 5.5%. The mixed economic result did put the market into quite indecision yesterday, leading to certain correction with the AUD gains.
On the other hand, today EUR German PPI report was published with an increase to 0.5% from the previous value of 0.1% which was expected to be at 0.3%, German WPI report also showed an increase to 0.5% from the previous value of 0.0% which was expected to be at 0.2% and Current Account report was published with a decrease to 32.0B from the previous figure of 36.8B which was expected to be at 35.1B. Moreover, today EUR Trade Balance report is going to be published which is expected to decrease to 20.7B from the previous figure of 21.0B.
As of the current scenario, EUR is expected to gain some momentum over AUD for a certain period, but the amount of sustainability cannot be analyzed yet. Though the struggle of EUR still continue, further bearish pressure is expected in this pair until ECB comes up with better policies next week during the ECB Monetary Policy Meeting Accounts on Thursday. To sum up, AUD is expected to have an upper hand over EUR in the coming days, leading to further bearish pressure in the pair.
Now let us look at the technical view. The price is currently quite impulsive with the bullish gains which are expected to push higher towards the 1.5750 area before proceeding much lower with target towards the 1.52 support area in the coming days. As the price remains below 1.58 with a daily close, further bearish pressure is expected.
The material has been provided by InstaForex Company – www.instaforex.com