EUR/AUD Strong Downtrend Continues
This week we have the ECB meeting, with analysts predicting further forms of QE by reducing deposit rates, which should weaken the EUR. Of recent, we’ve seen Commodities prices rebound, in particular Iron Ore, Copper, Gold, Oil (and coupled pricing on LNG), all key exports of Australia, causing AUD to appreciate. On this basis, should commodities prices continue to recover and ECB introduces further QE then EUR/AUD will proceed below our daily target that is 1.4650 and might extend to 1.4350 that is clearly seen on daily chart with a strong T-89 pattern rejection.
On intraday charts we have 2 POCs. 1.4750 zone (trend line and L3 X cross breakout) and 1.4810-30 (DPP, H3, EMA89) should reject the price if we see a retracement but currently we see a possible momentum break of L4 level. The price is currently 1.4690 and it is targeting 1.4640.
Pay attention to this pair as both technical and fundamentals are aligned and that provides great trading opportunities.
EUR/AUD Hourly Chart