- The Euro moved down against the Aussie dollar and may continue to decline in the short term.
- There is a crucial bearish trend line formed on the hourly chart of the EURAUD pair, which is acting as a hurdle for buyers on the upside.
- Earlier today, Italian EU Norm Inflation report was released by the Istat.
- There was a decline in the Italian CPI by 0.2% in July 2016, which was more than the forecast of -0.1%.
EURAUD Technical Analysis
The Euro was under pressure during the past few hours against the Aussie dollar and traded below the 21 hourly simple moving average. There is a crucial bearish trend line formed on the hourly chart of the EURAUD pair, acted as a barrier and stalled gains.
Currently, the pair is attempting a close below the 61.8% Fib retracement level of the last leg from the 1.4410 low to 1.4525 high.
A break and close below it could push the pair further down may be towards the recent low of 1.4410.
Earlier today during the London session, the Italian 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 the Istat.
The forecast was lined up for a rise of 0.2% in July 2016, compared with the previous month, and the result was as expected. Moreover, the Italian EU Norm Inflation declined by 0.2%, more than the forecast. The report added that the “lower decline on annual basis of the All items index was mainly due, on one hand, to the speed up of the yearly rates of change registered by the prices of Unprocessed food (+1.5%, from +0.7% in the previous month), of Services related to recreation, including repair and personal care (+0.8% from +0.4%) and of Services related to transport (+0.7%, from +0.2% in June) and on the other hand, to the reduction of the decline of prices of Regulated energy products (-5.9%, from -6.8% in June 2016)”.
Overall, the Euro is under pressure at the moment, and it may continue to trade lower in the near term versus the Aussie dollar.