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Dec 06, 2016

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Market Analysis

Home » Featured » EURAUD Gains Post Euro Zone Services PMI

EURAUD Gains Post Euro Zone Services PMI

Posted by FXTimes in Featured - January 6th, 2016 1:33 pm GMT

Key Points

  • Euro gained during the London session and traded higher against the Aussie Dollar.
  • EURAUD broke a major resistance area, which is a signal of more gains in the near term.
  • Euro Zone Services PMI published by the Markit Economics came in at 54.2 in December 2015, more than the forecast.
  • German Services PMI was also reported and posted an increase from 55.4 to 56.0 in Dec 2015.

Technical Analysis

The EURAUD pair gained handsomely during the past couple of sessions and traded above a major resistance area. There was a bearish trend line on the 4-hours chart, which was breached to open the gates for more gains in the near term.

EURAUD

The pair is now above the 50, 200 and 100 simple moving average on the 4-hours chart, suggesting buyers are in control. Buying dips from the current levels may be considered, especially if the pair moves towards the broken trend line.

On the upside, the next level of resistance can be around 1.5200.

Euro Zone Services PMI

Today, there were a couple of major releases in the Euro Zone, including the Services Purchasing Managers Index (PMI), which helps in analyzing business conditions in the services sector. It was released by Markit Economics, which came in at 54.2 in Dec 2015. The point to note is the fact that the market was not expecting any increase from 53.9.

Moreover, the German Services PMI was also published. The outcome was again on the higher side, as the PMI increased to 56.0 in December 2015.

Overall, the reports were positive, and lifted the market sentiment in favor of the Euro bulls. More gains are possible in EURAUD moving ahead.

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