Key Points
- The Euro after struggling to clear 1.4300 against the Aussie dollar moved down.
- The EURAUD during the downside broke a monster support trend line at 1.4200 on the hourly chart.
- In the Euro Zone today, the Italian Business Confidence for March 2017 was released by the Istat.
- The result was better than the forecast, as there was a rise from the last revised reading of 106.4 to 107.1 in March 2017.
EURAUD Technical Analysis
The Euro after a solid uptrend against the Aussie dollar found sellers near 1.4300. The EURAUD pair moved down and cleared the 1.4250 support area. The most important move was below a monster support trend line at 1.4200 on the hourly chart.
The pair also moved below the 21 hourly simple moving average and the 23.6% Fib retracement level of the last wave from the 1.3874 low to 1.4310 high.
The pair at the moment struggling to hold the 50% Fib retracement level of the last wave from the 1.3874 low to 1.4310 high. A break below 1.4080 could push it towards 1.4040.
Italian Business Confidence
Recently in the Euro Zone today, the Italian Business Confidence for March 2017 was released by the Istat. The market was expecting the Business Confidence to decline from 106.3 to 106.00 in March 2017.
The outcome was better than the forecast, as there was a rise to 107.1 in March 2017. The last reading was also revised higher from 106.3 to 106.4. The Italian Consumer Confidence also posted a rise from 106.6 to 107.6 in March 2017. The report added that the “economic and future components improved (from 120.8 to 126.4 and from 109.9 to 111.6 respectively), while the personal and current components worsened from 102.1 to 101.0 and from 104.7 to 104.5”.
Overall, the EURAUD pair remains in a downtrend, and any correction towards 1.4140-60 might face resistance.
