Key Points
- The Euro moved down recently after failing to break the 1.4320 level against the Aussie dollar.
- There is a bearish trend line formed on the hourly chart of EURAUD, which may at as a resistance on the upside near 1.4300.
- Today, the German Manufacturing Purchasing Managers Index (PMI) was released by the Markit economics.
- The outcome was above the forecast, as there was an increase from the last reading of 54.3 to 55.1 in Oct 2016 (preliminary).
EURAUD Technical Analysis
The Euro faced a lot of selling pressure near 1.4320 recently against the Aussie dollar and declined. There was a move towards the 76.4% Fib retracement level of the last wave from the 1.4229 low to 1.4322 high.
The EURAUD pair is currently attempting a recovery, but may find sellers near a bearish trend line formed on the hourly chart.
The same trend line is also aligned with the 21 hourly simple moving average to act as a perfect sell zone.
German Manufacturing PMI
Today in the Euro Zone, the Manufacturing Purchasing Managers Index (PMI), which captures business conditions in the manufacturing sector was released by the Markit economics.
The market was aligned for a minor decline from the last reading of 54.3 in Oct 2016 (preliminary) to 54.2. However, the result was above the forecast, as there was an increase to 55.1. The report stated that the “increase in overall activity was supported by the sharpest rise in new business this year so far. Demand for German services picked up, having increased only marginally in the prior month. Meanwhile, new orders placed with manufacturers continued to rise at a solid pace. Part of the increase was attributed to stronger demand from foreign clients, with Asia and the US mentioned specifically as sources of export growth”.
The Euro may correct higher after the positive release, but might face offers near 1.4300 against the Aussie dollar on the upside.
