Key Points
- The Euro moved higher and settled above the 1.4100 resistance against the Aussie dollar.
- There is a nice connecting bullish trend line with support at 1.4100 formed on the hourly chart of EURAUD.
- Today in the Euro Zone, the German GfK Consumer Confidence for March 2017 was released.
- The result was below the forecast, as the German GfK Consumer Confidence decline to 9.8 in March 2017.
EURAUD Technical Analysis
The Euro after a decline towards 1.3880 against the Aussie dollar formed a base and moved higher. During the upside, the EURAUD pair broke the 1.4000 handle, and then managed to trade above the 1.4100 resistance area.
As the moment, the pair has a nice connecting bullish trend line with support at 1.4100 formed on the hourly chart.
It already broke the 1.236 extension of the last decline from 1.4045 to 1.3874, which means it might test the 1.618 extension currently at 1.4151. One may consider buying dips in EURAUD as long as the pair is above the trend line support at 1.4100.
German GfK Consumer Confidence
Today in the Euro Zone, the German GfK Consumer Confidence for March 2017 was released. The market was expecting the index to remain at 10 in March 2017.
The outcome was below the forecast, as the German GfK Consumer Confidence decline to 9.8 in March 2017. According to the report, higher inflation was the main cause of the recent decline in the German GfK Consumer Confidence in March 2017. The report added that a “rise in inflation in Germany and the resultant intensified concerns over income buying power have obviously hindered full recovery of consumer sentiment in March this year”.
Overall, the Euro might dip a few pips from the current levels, but the EURAUD pair remains supported above 1.4100 for a move towards 1.4150 or 1.4160.
