- Euro traded lower against the Aussie Dollar and currently struggling to gain traction.
- There were a couple of support trend lines on the hourly chart, which were cleared by sellers to open the doors for more losses
- Euro Area Industrial Production reported by the Eurostat disappointed, as it came in at -0.7% in November 2015, compared with the forecast of -0.3%.
- When we look at the yearly change, then the IP was +1.1%, compared with the forecast of +1.3%.
The EURAUD pair recently traded down and broke a couple of support trend lines on the hourly chart. The pair traded as low as 1.5340 where it found buyers and tried to correct back higher.
However, the upside found resistance as the 50% Fib retracement level of the last drop from the 1.5585 high to 1.5340 low acted as a resistance.
On the downside, the 1.5340 level can be seen as a support, and if broken may take the EURAUD pair towards 1.5320-00.
Euro Area Industrial Production
The Euro Area saw a couple of important economic releases today, including the Industrial Production by the Eurostat, which represents the volume of production of Industries such as factories and manufacturing. The forecast was lined up for -0.3% in November 2015, compared with Oct 2015, but the result was lower as the decline was -0.7%. Similarly, the Euro Area IP posted a rise of 1.1% in November 2015, compared with Nov 2014, which was again lower compared with the forecast of +1.3%.
The report stated that “Member States for which data are available, the largest decreases in industrial production were registered in Portugal (-4.9%), Malta (-3.7%), the Netherlands (-3.1%), Estonia and Lithuania (both -2.6%), and the highest increases in Greece (+3.3%) and Slovakia (+1.9%)”.
The EURAUD may attempt to recover, but could fail as long as it is below the broken trend line and 50 hourly MA.