22 Oct 2014
EUR/AUD a volatile piece of play on CPI
FXStreet (Barcelona) - EUR/AUD is trading at 1.4501, up 0.13% on the day, having posted a daily high at 1.4538 and low at 1.4470.
EUR/AUD was another volatile move in the Aussie crosses over the release of the CPI data moving in a knee jerk to the upside but limited to the downside and settled back in similarly in line with regular trend and tucked in below the handle. CPI arrived in line at 2.3% y/y vs 2.3% y/y expected in 3Q; prior at 3.0% y/y in 2Q. The pair has challenged both the downside and upside in over a 70-pip range on the data.
The pair is anchored to the downside in a drawn out bearish channel this month which is moving against Septembers bull run and while markets remain concerned over the ECB’s intentions on corporate bond buying, the price action will likely reflect the chatter of that for the time being until next week while the RBA’s decision in November will be of key interest, but likely subdued due to the sluggish wage growth in the economy of late.
EUR/AUD noteworthy levels
With spot trading at 1.4503, we can see next resistance ahead at 1.4504 (Daily Classic PP), 1.4531 (Hourly 200 SMA), 1.4538 (Daily High), 1.4564 (Hourly 100 SMA) and 1.4580 (Weekly Classic PP). Support below can be found at 1.4498 (Hourly 20 EMA), 1.4487 (Daily Open), 1.4484 (Weekly Low), 1.4477 (Daily 20 SMA) and 1.4470 (Daily Low).
EUR/AUD was another volatile move in the Aussie crosses over the release of the CPI data moving in a knee jerk to the upside but limited to the downside and settled back in similarly in line with regular trend and tucked in below the handle. CPI arrived in line at 2.3% y/y vs 2.3% y/y expected in 3Q; prior at 3.0% y/y in 2Q. The pair has challenged both the downside and upside in over a 70-pip range on the data.
The pair is anchored to the downside in a drawn out bearish channel this month which is moving against Septembers bull run and while markets remain concerned over the ECB’s intentions on corporate bond buying, the price action will likely reflect the chatter of that for the time being until next week while the RBA’s decision in November will be of key interest, but likely subdued due to the sluggish wage growth in the economy of late.
EUR/AUD noteworthy levels
With spot trading at 1.4503, we can see next resistance ahead at 1.4504 (Daily Classic PP), 1.4531 (Hourly 200 SMA), 1.4538 (Daily High), 1.4564 (Hourly 100 SMA) and 1.4580 (Weekly Classic PP). Support below can be found at 1.4498 (Hourly 20 EMA), 1.4487 (Daily Open), 1.4484 (Weekly Low), 1.4477 (Daily 20 SMA) and 1.4470 (Daily Low).