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Market Analysis

Home » Featured » EURAUD Facing A Major Challenge

EURAUD Facing A Major Challenge

Posted by FXTimes in Featured - March 2nd, 2016 1:57 pm GMT

euro eurusd euraud

Key Points

  • Euro traded down against the Australian Dollar today, after the release of the Australia’s GDP report.
  • There was a support trend line formed on the hourly chart of the EURAUD pair, which was broken to clear the way for more losses.
  • Australian Gross Domestic Product released earlier today by the Australian Bureau of Statistics registered a growth of 0.6% in Q4 2015.
  • The yearly Australian Gross Domestic Product rose 3%, which was more than the market forecast.

Technical Analysis

The Euro crashed against the Aussie Dollar recently, as the latter one gained a lot of bids. The better than forecast GDP figures in Australia lifted the market sentiment for the Aussie Dollar. There was a support trend line formed on the hourly chart of the EURAUD pair, which was breached by the Aussie Dollar bulls.

EURAUD

The pair traded as low as 1.4988 where buyers appeared to defend the downside. The pair is recovering, but may face a major resistance near the 1.5060-80 area.

On the downside, a close below the 1.4980 level may take the pair towards 1.4950.

Australian Gross Domestic Product

Earlier today, the Australian Gross Domestic Product was reported by the Australian Bureau of Statistics. The forecast was a gain of 0.5% in the total value of all goods and services produced by Australia. The result was better, as the GDP rose 0.6%.

When we look at the year-over-year change, then the Australian Gross Domestic Product gained by 3%, which was above the forecast of 2.6% in Q4 2015, compared with Q4 2014.

Overall, the report was in favor of more gains in the Aussie dollar, and as a result EURAUD moved down. Let’s see whether the current recovery in EURAUD can break 1.5100 or not.

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