The single currency continues to get heavily battered by its Australian counterpart in early Europe, thrashing EUR/AUD to fresh eight-week lows below crucial 1.50 mark.
EUR/AUD drops almost 1 big figure
The EUR/AUD pair sinks 1.04% to fresh two-month lows of 1.4987, having breached the 1.5000 support. The cross remains heavily offered largely on the Aussie strength after the surprisingly strong Australia’s Q4 GDP outcome bolstered the AUD bulls. The Australian economy expanded 0.6% in Q4 2015, beating forecasts of a 0.4% growth. The upbeat Aus data put rest to the RBA easing talks for now, as traders await more domestic economic news in the form of trade and retail sales data for further cues.
Adding to the losses in EUR/AUD, the EUR/USD pair remains weak and is on track to test monthly lows on 1.08 handle. Looking ahead, attention now remains on the US ADP jobs report for fresh direction on the USD, which will eventually impact both EUR and AUD.
EUR/AUD Levels to consider
The pair has an immediate resistance at 1.5055/62 (daily S1/ 1h 10-SMA), above which 1.5100/15 (round number/ 1h 20-SMA) would be tested. On the flip side, support is seen at 1.4961 (Jan 5 Low) below which it could extend losses to towards 1.4854/52 (Dec 31 & Jan 4 Low).
(Market News Provided by FXstreet)