Key Points
- The Euro after trading as high as 1.4335 found resistance against the Aussie dollar and moved down.
- There is a major bearish trend line with resistance at 1.4240 on the hourly chart of EURAUD, acting as a hurdle for further gains.
- Recently in the Euro Zone, the Consumer Confidence for April 2017 (Preliminary) reading was released by the European Commission.
- The outcome was better than the forecast, as there was a rise in the Consumer Confidence from the last reading of -5 to -3.6.
EURAUD Technical Analysis
The Euro had a good bullish run against the Aussie Dollar, as it traded above the 1.4300 level. However, the EURAUD pair after trading as high as 1.4335 found resistance and moved down. It traded below the 23.6% Fib retracement level of the last wave from the 1.4004 low to 1.4335 high.
The pair has also moved below 1.4300 and the 21 hourly simple moving average, opening the doors for more declines in the near term.
There is a major bearish trend line with resistance at 1.4240 on the hourly chart, acting as a barrier and pushing the pair down. The next major stop for the pair could be near the 50% Fib retracement level of the last wave from the 1.4004 low to 1.4335 high at 1.4170.
Euro Zone Consumer Confidence
Today in the Euro Zone, the Consumer Confidence for April 2017 (Preliminary) reading was released by the European Commission. The forecast was lined up for a rise from the last reading of -5 to -4.8.
The result was better than the forecast, as there was a rise in the Consumer Confidence from the last reading of -5 to -3.6. The report stated that in “April 2017, the DG ECFIN flash estimate1 of the consumer confidence indicator2 increased markedly in the euro area (by 1.4 points to -3.6) and, to a somewhat lesser extent, in the EU (by 0.8 point to -3.4) compared to March“.
Overall, the EURAUD pair may move down in the near term towards the next support at 1.4200.
