11 Jul 2013
EUR/AUD testing the 1.4200 barrier
FXstreet.com (New York) - The EUR/AUD technical cross has rallied Thursday morning, during what has become a tumultuous Asian session on the heels of dovish Fed comments.
The subsequent news has certainly fostered an influx in the exchange rate of the EUR/AUD, which bulled ahead of the 1.4200 level in recent minutes, ultimately peaking at 1.4224. Presently however, the cross has eased back towards the 1.4200 level, notching a gain of +0.39% during Asian trading. Technically speaking, the EUR/AUD will look to test resistances at 1.4216 (June 11 high) then 1.4243 (June 25 high).
EUR/AUD advance may not last ahead of RBA
Despite the recent advance today, “the relative AUD outperformance as of late is viewed as significant, opening up short-term targets for the EUR/AUD at 1.3800/20 and quite possibly 1.35-1.3600 (Fibonacci retracement and head and shoulders targets). However, by early August, the RBA rate cut we expect should hurt the AUD once more, threatening a return to the 1.4300 area, especially if the ECB takes its time to agree on fresh easing measures.” notes Sean Callow, a Global FX Strategist at Westpac.
The subsequent news has certainly fostered an influx in the exchange rate of the EUR/AUD, which bulled ahead of the 1.4200 level in recent minutes, ultimately peaking at 1.4224. Presently however, the cross has eased back towards the 1.4200 level, notching a gain of +0.39% during Asian trading. Technically speaking, the EUR/AUD will look to test resistances at 1.4216 (June 11 high) then 1.4243 (June 25 high).
EUR/AUD advance may not last ahead of RBA
Despite the recent advance today, “the relative AUD outperformance as of late is viewed as significant, opening up short-term targets for the EUR/AUD at 1.3800/20 and quite possibly 1.35-1.3600 (Fibonacci retracement and head and shoulders targets). However, by early August, the RBA rate cut we expect should hurt the AUD once more, threatening a return to the 1.4300 area, especially if the ECB takes its time to agree on fresh easing measures.” notes Sean Callow, a Global FX Strategist at Westpac.