Key Points
- The Euro made an upside move from the 1.4930 swing low against the Aussie Dollar.
- The EURAUD pair broke a major bearish trend line at 1.4985 on the hourly chart to open the bullish gates in the short term.
- Today in the Euro Zone, the Italian Industrial Sales report for March 2017 was released by the National Institute of Statistics.
- The result was better than the forecast, as the Industrial Sales rose 7.2% in March 2017 (YoY), more than the last 4.6%.
EURAUD Technical Analysis
The Euro after a downside move below 1.4950, traded towards the 1.4930 support against the Aussie Dollar. The EURAUD pair consolidated above 1.4930 for some time, and later gained momentum to trade higher.
The pair traded above the 23.6% Fib retracement level of the last decline from the 1.5071 high to 1.4930 low, and the 21 simple moving average.
The pair also succeeded in breaking a major bearish trend line at 1.4985 on the hourly chart. At the moment, it is attempting to clear the 61.8% Fib retracement level of the last decline from the 1.5071 high to 1.4930 low. If it succeeds, it can easily test 1.5050-70.
Italian Industrial Sales
Recently in the Euro Zone, the Italian Industrial Sales report for March 2017 was released by the National Institute of Statistics. The market was positioned for the Sales to increase by around 5% in March 2017, compared with the same month a year ago.
The result was better than the forecast, as the Industrial Sales rose 7.2% in March 2017 (YoY), more than the last 4.6%. Furthermore, the report added that “In March 2017 the seasonally adjusted turnover index increased by 0.5% compared to the previous month (+1.1% in domestic market and -0.9% in non-domestic market). The percentage change of the average of the last three months compared to the previous three months was +0.4% (+1.0% in domestic market and -0.8% in non-domestic market)”.
Overall, the EURAUD pair may gain pace further in the near term towards 1.5050 if buyers remain in control.
