Technical Bias: Bullish
- Euro gained a lot of pace against the Aussie Dollar, as the EURAUD pair traded above 1.5400.
- In the Euro Zone, the German GfK Consumer Confidence was released, which posted a reading of 9.9, down from the last reading of 10.1.
- There is a lot of buying pressure noted on the Euro, which might increase as we move ahead.
The EURAUD pair climbed higher recently and traded above a crucial resistance area of 1.5400. There were a couple of trend lines on the hourly chart, which were cleared by buyers to take the pair higher. The pair is currently struggling to clear 1.5460-65, which might cause a minor pullback moving ahead.
If the pair corrects lower from the current levels, then it might face support around the 23.6% Fib retracement level of the last wave from 1.5003-1.5465.
A break above the last high of 1.5465 might be take the pair towards the next resistance area of 1.5500.
German Gfk Consumer Confidence Survey
Earlier during the London session, there was a major release in the Euro Zone, as the German GfK Consumer Confidence, which is a leading index that measures the level of consumer confidence in economic activity was published. The forecast was lined up for no change from 10.1. However, the outcome was on the lower side, as it came in at 9.9 in August 2015. According to the report, the economy and income expectations as well as the willingness to buy have suffered losses.
It would be safe to say as highlighted in the report as well that strong consumer optimism was slightly dampened in midsummer. However, there was no major impact on the Euro, which is a positive sign in the near term.
We can attempt a buy trade if the EURAUD corrects lower from the current levels towards the 1.5350 level.