- Euro traded positively against the Aussie Dollar recently, but finding sellers near 1.4600-20 resistance area.
- There is a breakout pattern formed on the hourly chart of the EURAUD pair, which may provide the next move in the short term.
- German business sentiment index released by the CESifo Group posted a decline from 106.7 to 106.6 in April 2016.
- German IFO Current Assessment also declined from 113.8 to 113.2 in April 2016.
The Euro continuously attempted to break an important resistance area against the Aussie Dollar at 1.4600-20, but failed. There is a breakout pattern formed on the hourly chart of the EURAUD pair, which may act as a catalyst for the next wave moving ahead.
The pair looks like struggling at the moment, and may decline. On the upside, the 100 hourly simple moving average is also acting as a hurdle and preventing gains.
On the downside, the 100 hourly SMA may act as a support, followed by the 1.4530 level where buyers may step in if the pair moves down.
German IFO Business Climate Index
Earlier today, the German business sentiment index was released by the CESifo Group. The index is closely watched indicator of current conditions and business expectations in Germany and was forecasted to rise from 106.7 to 107.0. However, the outcome was not as expected, as there was a decline from 106.7 to 106.6 in April 2016.
The report highlighted that “Although companies were somewhat less satisfied with their current situation, their business expectations brightened once again. The moderate upturn in the German economy continues.”
Overall, the result was not as the market expected, and may increase bearish pressure on the euro in the short term.