- EUR/AUD was up +25pts in Asia on AUD led weakness after Australia’s trade deficit widened to A$3.3 billion, compared to forecasts of A$2.6 billion
- The pair could not hold on to gains, has slipped lower and is currently trading at 1.4482 after hitting session highs at 1.4562
- The pair has retraced over 75 % Fibo of the 1.3677 to 1.6584 (Apr – Aug) rise, momentum studies, 5, 10 & 20 DMAs head lower – negative trending setup, close above 1.4632 (10 DMA) would suggest a period of consolidation
- Market focus on ECB today, uncertainty has surfaced on Draghi’s ability to over deliver, should Draghi fail to do so EUR shorts likely to be squeezed
- Immediate resistance is seen at 1.4632 (10 DMA) ahead of 1.4785 (61.8 % Fibo of 1.3677 to 1.6584 (Apr – Aug) rise), while supports on the downside are seen at 1.4413 (Dec 2 low) and then 1.4360 (76.4 % Fibo of 1.3677 to 1.6584 rise)
The material has been provided by InstaForex Company – www.instaforex.com