Key Points
- Euro after trading as low as 1.4802 against the Aussie dollar recovered and currently facing a short-term resistance.
- There is a bearish trend line formed on the hourly chart of the EURAUD, which is currently acting as a resistance area.
- Today, the German Import price index, released by Deutsche Bundesbank posted an increase of 0.9% in May 2016.
- In terms of the yearly change, there was a decline of 5.5% in the index.
Technical Analysis
The Euro moved down versus the Aussie dollar and traded close to the 1.4800 level before starting a recovery. The EURAUD pair is now above the 100 and 50 hourly simple moving average, which is a positive sign for the Euro in the near term.
There is a bearish trend line formed on the hourly chart of the EURAUD, which may act as a pivot area moving ahead.
A break above the trend line resistance might ignite an upside move in the EURAUD pair.
German Import Price Index
In the Euro Zone today, the Import price index was released by Deutsche Bundesbank. The market was expecting the index to increase by 0.7% in May 2016. However, the outcome was positive, as the change in prices for goods imported by Germany rose 0.9%.
A report recently published by the Bundesbank stated “In the wake of the UK referendum on the country’s membership of the European Union, the European Central Bank and the other central banks of the Eurosystem will closely monitor developments in financial markets. In a press release approved by the Governing Council, the ECB has stated that it is in close contact with other central banks and stands ready to provide additional liquidity, if needed, in euro and foreign currencies“.
It looks like there is a chance of EURAUD moving above the trend line resistance in the short term.
