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Market Analysis

Home » Featured » EURAUD Looks Set For More Upsides

EURAUD Looks Set For More Upsides

Posted by FXTimes in Featured - November 16th, 2015 12:10 pm GMT

euro eurusd

Key Points

  • Euro managed to gain bids against a few major currencies including the Aussie Dollar.
  • There is a bearish trend line formed on the hourly chart of the EURAUD pair, which may be breached to clear the way for more upsides.
  • Euro Zone CPI released by the Eurostat posted an increase of 0.1% in October 2015, compared with the forecast of 0%.
  • The Core Consumer Price Index also came above the forecast, and posted a rise of 1.1%, compared with the forecast of 1%.

Technical Analysis

The EURAUD pair fell towards the 1.5040 support area recently where sellers struggled and as a result, there was an upside reaction. There are a couple of bearish trend lines formed on the hourly chart, and it looks like the pair may be able to break the first one and trade higher.

EURAUD

A break above the trend line and resistance area could take the EURAUD pair towards the 100 hourly simple moving average (MA), which is positioned with the 61.8% Fib retracement level of the last leg from the 1.5196 high to 1.5043 low.

There is even a chance that the EURAUD pair could trade towards the second bearish trend line.

Euro Zone CPI

There was a major release during the London session, as the Euro Zone Consumer Price Index, which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services was released by Eurostat. The forecast was lined up for an increase of 0.1% in October 2015, compared with the preceding month. The result was in line with the forecast, but the yearly change was above the forecast with a gain of 0.1% (YoY).

The Euro Zone Core CPI also posted a better reading with an increase of 1.1%, compared with the forecast of 1%.

Overall, it looks like that the EURAUD pair may head higher in the near term.

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