Key Points
- Euro traded down vs the Aussie Dollar today, and currently trading near a major support area.
- There is a bullish trend line formed on the hourly chart of the EURAUD pair, which may be cleared by sellers.
- Today in the Euro Zone, the Current Account figure was released by the European Central Bank.
- The outcome was above the forecast, as the trade surplus was €34.0B in April 2016 (n.s.a.).
Technical Analysis
The Euro after trading above 1.5350 against the Aussie Dollar traded lower, and moved towards the 1.5200 support area. There is a bullish trend line formed on the hourly chart of the EURAUD pair, which is currently acting as a support area and preventing gains.
On the upside, there is a major resistance near the 200 hourly simple moving average, which may act as a hurdle for the Euro bulls at 1.5260.
On the downside, we need to keep an eye highlighted trend line support area.
Euro Area Current Account
Today, Current Account, which is a net flow of current transactions, including goods, services, and interest payments into and out of the Euro-Zone was released by the European Central Bank. The market was not expecting an improved reading. However, the outcome was positive, as the trade surplus was €34.0B in April 2016 (n.s.a.).
The report stated that the “12-month cumulated current account for the period ending in April 2016 recorded a surplus of €329.4 billion (3.1% of euro area GDP), compared with one of €282.4 billion (2.8% of euro area GDP) for the 12 months to April 2015”.
The Euro may gain a few bids around the trend line support, but we need to see if it can break the highlighted resistance area at 1.5250-60 or not.
