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Dec 08, 2016

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Market Analysis

Home » Featured » EURAUD Eyeing More Declines?

EURAUD Eyeing More Declines?

Posted by FXTimes in Featured - February 18th, 2016 3:07 pm GMT

euro eurusd

Key Points

  • Euro dived against the Aussie Dollar recently, as the latter one gained traction.
  • Euro was seen struggling not only against the US Dollar, but also against a few other currencies.
  • Euro Area Current Account released by European Central Bank posted a surplus of €25.5B, less than the last revised reading of €26.9B.
  • ECB Monetary Policy Meeting Accounts also played with the mind of Euro investors and pushed the shared currency down.

Technical Analysis

The EURAUD pair setting a short-term top around 1.6250 moved down. There was a major support trend line, which was breached by sellers to ignite a downside move. The downside was swift, and due to that the pair also cleared the 100 and 200 simple moving average on the 4-hours chart.

EURAUD

The EURAUD pair is currently trading near the 1.236 extension of the last leg from the 1.5540 low to 1.5773 high. So, there is a chance of a minor pullback from the current levels, but may find resistance near the 200 MA.

On the downside, the next support area can be around 1.5396, which is the 1.618 extension.

Euro Area Current Account

Today, the Euro Area Current Account, which is a net flow of current transactions, including goods, services, and interest payments into and out of the Euro-Zone was released by European Central Bank. The outcome was mixed, as the surplus was €25.5B, less than the last revised reading of €26.9B.

The report added that “current account of the euro area recorded a surplus of €29.4 billion in January 2015 (see Table 1). This reflected surpluses for goods (€25.2 billion), services (€4.4 billion) and primary income (€11.5 billion), which were partly offset by a deficit for secondary income (€11.6 billion)”.

Overall, the Euro is under a lot of bearish pressure, which means there are high chances of EURAUD heading down.

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