Key Points
- The Euro gained heavily this week so far against the Aussie dollar, and traded above 1.4450.
- There is a major resistance trend line formed on the hourly chart of EURAUD, which may act as a hurdle for more gains on the upside at 1.4510.
- Today in Australia, the RBA Interest Rate Decision was announced by the Reserve Bank of Australia.
- There result was as expected, as there was no rate change from 1.5% by the RBA.
EURAUD Technical Analysis
The Euro enjoyed a good upside ride recently against the Aussie dollar, as the EURAUD pair traded above the 1.4450 resistance area. However, the pair is currently approaching the 1.236 extension of the last wave from the 1.4437 high to 1.4147 low.
The stated extension also coincides with a major resistance trend line formed on the hourly chart at 1.5510.
So, there is a chance that the EURAUD pair may face sellers near 1.5510-20 resistance area, and correct a few pips lower.
Australian Current Account Balance
Today in Australia, the Current Account Balance, which is a net flow of current transactions, including goods, services, and interest payments into and out of Australia was released by the Australian Bureau of Statistics.
The market was expecting a trade deficit of 13.7B in Q3 2016. However, the result was better, as the trade deficit was -11.4B. The report stated that the “current account deficit, seasonally adjusted, fell $4,585m (29%) to $11,358m in the September quarter 2016. The deficit on the balance on goods and services fell $2,699m (37%) to $4,682m. The primary income deficit fell $1,946m (24%) to $6,265m”.
Overall, the EURAUD pair may continue to trade higher, but there can be a reaction near the trend line resistance at 1.4510.
