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Dec 08, 2016

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Market Analysis

Home » Technical Analysis » Weekly » EURAUD » EURAUD – Important Trend Line Support

EURAUD – Important Trend Line Support

Posted by FXTimes in EURAUD - December 23rd, 2015 1:30 pm GMT

euro eurusd

Key Points

  • Euro is at risk of a major break against the Aussie Dollar, and it is trading near a critical trend line and support area.
  • A break below the highlighted trend line and support area may call for a move towards 1.50.
  • France Gross Domestic Product released by INSEE posted an increase of 0.3% in Q3 2015, just as the market expected.
  • Italian Industrial Sales released by the National Institute of Statistics rose 1.6% in October 2015, which was better than the last decline of 0.9%.

Technical Analysis

The EURAUD pair recently moved lower and traded near a crucial support trend line formed on the hourly chart. Buyers managed to prevent a downside break and currently pushing the pair higher.

EURAUD

However, the EURAUD pair is now below the 50, 100 and 200 hourly simple moving average, which is a bearish sign. Sellers may appear around the 100 MA and prevent the upside move. The 61.8% Fib retracement level of the last drop from the 1.5192 high to 1.5085 low is also positioned with the 100 MA.

On the downside, a break and close below the trend line may ignite more losses.

France GDP

Today in the Euro Zone, the French Gross Domestic Product, which is a measure of the total value of all goods and services produced by France was released by INSEE. The forecast was lined up an increase of 0.3% in Q3 2015, compared with the preceding quarter. The end result matched the forecast, as the French GDP rose 0.3%.

The report stated that “At the end of Q3 2015, the Maastricht debt reached €2,103.2 billion, a €2.2 billion decrease in comparison to Q2 2015. It accounted for 96.9 % of GDP, 0.7 points lower than Q2 2015’s level. The net public debt declined more slightly (–€1.4 billion).”

In short, the EURAUD pair is at risk of a breakdown. As long as the pair is above the trend line and support area, it may recover else a break is near.

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