Key Points
- The Euro remained elevated above the 1.4700 support area against the Aussie Dollar.
- There is a monster bearish trend line positioned at 1.4755 on the hourly chart of EURAUD.
- Today in Australia, the HIA New Home Sales figure for May 2017 was released by the Housing Industry Association.
- The outcome was below the forecast, as there was a decline of 6.9% in sales (MoM).
EURAUD Technical Analysis
The Euro traded with a positive bias and after a low near 1.4565 against the Aussie dollar, there was recovery kicked in. The EURAUD pair bounced back higher and moved above 1.4700 handle and the 21 hourly simple moving average.
The pair traded towards a monster bearish trend line positioned at 1.4755 on the hourly chart. It pushed the pair back towards the 1.4700 support and a bullish trend line.
The pair is placed well above the 21 hourly simple moving average and the 1.4700 support holding well. It means there is a high chance of EURAUD breaking the trend line at 1.4755-60 for more gains.
Australia’s HIA New Home Sales
Today in Australia, the HIA New Home Sales figure for May 2017 was released by the Housing Industry Association. The market was positioned for a minor increase of 1% compared with the previous month.
The actual result was below the forecast, as there was a decline of 6.9% in sales, which was a lot less than the last increase of 1.1%. The report added that:
There were considerable differences in sales in June around the states with new detached house sales rising both in Victoria (+4.1 per cent) and Western Australia (+21.1 per cent). However, sales fell in New South Wales (-9.7 per cent), Queensland (-29.3 per cent) and South Australia (-23.7 per cent) during the month.
Overall, the EURAUD pair remains supported above 1.4700 and may look to extend gains in the near term.
