Key Points
- The Euro recently surged higher versus the Aussie dollar, but failed to break the 1.5100 handle.
- There is likely a double top pattern formed on the hourly chart of EURAUD, signaling a top.
- Today in Australia, the Employment Change was released by the Australian Bureau of Statistics.
- The result was on the lower side, as there was a change of -3.9K in August 2016.
EURAUD Technical Analysis
The Euro recently enjoyed a lot of gains against the Aussie dollar and traded as high as 1.5100 where the sellers stepped in. There were two attempts to break the stated level, but the bulls failed to break it, which presents a risk of a double top pattern on the hourly chart.
The pair is currently trading near a bullish trend line formed on the hourly chart, which may act as a breakout zone for the next move.
One may consider selling the EURAUD pair with a break and close below the 21 hourly simple moving average and the trend line.
Australia Employment Change
Today in Australia, there was a major release. The Employment Change, which is a measure of the change in the number of employed people in Australia was released by the Australian Bureau of Statistics. The forecast was slated for a change of 15K in August 2016.
However, the result was on the lower side, as the Employment Change came in at -3.9K. However, the unemployment rate decrease from 5.7% to 5.6%, which helped the Aussie Dollar. The report added that the “Unemployment decreased 10,500 to 713,300. The number of unemployed persons looking for full-time work increased 14,900 to 496,900 and the number of unemployed persons only looking for part-time work decreased 25,400 to 216,400.”
Overall, the Euro remains at a risk of a downside move against the Aussie dollar if there is a break below the trend line support.
