Key Points
- Euro looks like following a bullish path vs the Aussie Dollar, and may head higher in the short term.
- There is a contracting triangle pattern formed on the hourly chart of the EURAUD pair, which may act as a catalyst for the next move.
- Portugal Unemployment Rate released by Statistics Portugal posted a rise from 12.2% to 12.4% in Q1 2016.
- Australian Home Loans released by the Australian Bureau of Statistics posted a decline of 0.9% in March 2016, better than the forecast of -1.5%.
Technical Analysis
The Euro climbed higher vs the Aussie dollar recently and traded above 1.5550. There is now a contracting triangle pattern formed on the hourly chart of the EURAUD pair, which may provide us the next move in the short term.
There is a high possibility that the EURAUD pair may dip once towards the triangle support area to get bids, and then trade higher.
A break above the triangle resistance area could take the pair higher and a test of the 1.5600 level is possible.
Australian Home Loans
Earlier today, the Australian Home Loans report was released by the Australian Bureau of Statistics. The market was expecting the number of home loans to decline by 1.5% in March 2016. However, the result was better, as the decline was 0.9%.
The report added that in “trend terms, the number of commitments for the purchase of new dwellings fell 3.3%, the number of commitments for the construction of dwellings fell 0.9%, while the number of commitments for the purchase of established dwellings rose 0.1%”.
Overall, the Aussie dollar buyers were not impressed, which supports the view of more gains in EURAUD.
