Key Points
- The Euro is recovering against the Aussie Dollar, but likely to face offers on the upside.
- There is a major resistance in the form of a bearish trend line on the hourly chart of the EURAUD pair.
- Today in Australia, the Building Permits report was released by the Australian Bureau of Statistics.
- The outcome was positive, as there was a rise of 11.3% in July 2016, compared with the forecast of 0%.
EURAUD Technical Analysis
The Euro recently traded as low as 1.4745 versus the Aussie dollar where the buyers appeared. The EURAUD pair is currently recovering, and trading above the 21 hourly simple moving average.
However, there is a major resistance in the form of a bearish trend line on the hourly chart waiting on the upside to act as a barrier for more gains.
If the pair continues to trade higher, then one may consider selling EURAUD around the trend line resistance.
Australian Building Permits
Today during the Asian session, the Building Permits, which shows the number of permits for new construction projects was released by the Australian Bureau of Statistics. The forecast was slated for no change in July 2016, compared with the previous month.
However, the result was positive, as there was a rise of 11.3%. In terms of the yearly change, there was an increase of 3.1%. The report added that the “seasonally adjusted estimate of the value of total building approved rose 3.2% in July and has risen for two months. The value of residential building rose 6.2% after falling for two months. The value of non-residential building fell 2.5% following a rise of 16.5% in the previous month”.
Overall, the Euro is currently gaining traction versus the Aussie dollar, but there sellers waiting on the upside to provide offers.
