EUR/AUD backing up into 4th July holiday mode
FXStreet (Guatemala) – EUR/AUD is trading at 1.4538, up 0.51% on the day, having posted a daily high at 1.4603 and low at 1.4460.
It has been a busy day around the clock and EUR/AUD has been no exception with plenty of action overnight from RBA rhetoric in Australia and today from the ECB in Europe. Jacqui Douglas, Senior Global Strategist in Rates and FX Research at TD Securities noted that today’s ECB decision was nearly as quiet as we expected it to be, after the ECB got all the difficult decisions out of the way already in June. “However, the EUR did still manage to drift lower through the press conference despite any obvious catalysts, as FX markets seemed to follow “the trend is your friend” mantra”. We have seen a follow through of this in EUR/AUD, with some trader packing up for the long weekend in the US while the pair had been testing 1.4600 on the back of the negativity around the Aussie and Steven’s dovish and bearish speech that overvalued the Aussie by over three cents to the dollar in his opinion.
Spot is presently trading at 1.4538, and next resistance can be seen at 1.4540 (Hourly 20 EMA), 1.4560 (Weekly Classic R1), 1.4579 (Daily Classic R3), 1.4603 (Daily High) and 1.4645 (Weekly Classic R2). Next support to the downside can be found at 1.4531 (Daily Classic R2), 1.4515 (Weekly High), 1.4505 (Daily 20 SMA), 1.4497 (Daily Classic R1) and 1.4490 (Hourly 100 SMA).
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