- Euro traded higher against the Australian Dollar, and it looks like there are more gains feasible.
- There is a contracting triangle pattern formed on the hourly chart of the EURAUD pair, which may play a key role moving ahead.
- German Factory orders released by the Deutsche Bundesbank decreased 0.7% in December 2015.
- The US NFP data will be released today, which may impact most major pairs in the near term.
The Euro traded higher against the Aussie Dollar recently, and tested the 1.5600 resistance area where sellers managed to stall gains. There is a contracting triangle pattern formed on the hourly chart of the EURAUD pair, which acted as a barrier and stopped gains in the pair.
The pair is well above the 100 and 200 hourly simple moving average, which is a positive sign and could take the pair higher.
On the downside, the 50 MA is where the bulls may step in and where one might consider buying in the near term. The hourly RSI is above the 50 level, which is another bullish sign for buyers.
German Factory Orders
Today during the London session, the German Factory orders, which points to orders including shipments, inventories, and new and unfilled was reported by the Deutsche Bundesbank. The forecast was lined up for a decrease of 0.5% in December 2015, compared with Nov 2015. The result was disappointing, as the factory orders fell 0.7% in Dec 2015.
The Euro is struggling to break the gates for more gains against the Australian Dollar, and it may depend on the upcoming events.
If there is a break above the triangle resistance trend line, then we can see the EURAUD pair trading higher.