Key Points
- The Euro after trading towards 1.4780 against the Aussie dollar found sellers and moved down.
- There is an expanding triangle pattern formed on the 4-hours chart of the EURAUD pair, which is acting as a hurdle for more gains.
- Today, the German wholesale price Index was released by the Statistisches Bundesamt Deutschland.
- The outcome was better than the market expectation, as there was a rise of 0.4% in Sep 2016.
EURAUD Technical Analysis
The Euro is trading inside an expanding triangle pattern formed on the 4-hours chart versus the Aussie dollar. There was a recently a move towards the triangle resistance trend line at 1.4780 where the sellers appeared and pushed the EURAUD pair down.
The pair is now below the 21 hourly simple moving average, and looks positioned for more declines in the short term.
There is a chance of a downside spike towards the 1.236 extension of the last wave from the 1.4541 low to 1.4781 high where the Euro bulls may appear to defend losses.
German Wholesale Price Index
Today in the Euro Zone, the German wholesale price Index, which shows value of sales made by wholesalers in Germany was released by the Statistisches Bundesamt Deutschland.
The market was expecting a rise of 0.3% in the index in August 2016, compared with the previous month. However, the result was better, as there was an increase of 0.4% in the WPI. The report added that the “selling prices in wholesale trade decreased by 0.3% in September 2016 from the corresponding month of the preceding year. In August and in July 2016 the annual rates of change were –1.2% and –1.4%, respectively”.
Overall, the Euro may spike down versus the Aussie dollar, but there is a chance of it finding buyers on the downside.
