Key Points
- The Euro after trading below 1.4200 against the Aussie dollar found support and recovered.
- There was a monster bearish trend line formed on the hourly chart of EURAUD, which was broken during the upside move.
- Today in the Euro Zone, the Private loans figure was released by European Central Bank.
- There outcome was mixed, as there was an increase of 1.8% in Oct 2016, compared with Oct 2015.
EURAUD Technical Analysis
The Euro faced selling pressure lately against the Aussie dollar and traded below the 1.4200 level. Later, the EURAUD pair recovered, and broke a monster bearish trend line formed on the hourly chart.
The pair even traded towards the 1.4300 before starting a correction. It is currently testing the 61.8% Fib retracement level of the last wave from the 1.4180 low to 1.4310 high.
So, there is a high possibility of a bounce back in EURAUD in the short term. A move back towards the 1.4300 is likely where the Euro bulls may struggle to retain the bullish momentum.
Euro Zone Private Loans
Today in the Euro Zone, the Private loans, which is change in the total value of new loans issued to consumers and businesses in the private sector was released by European Central Bank.
The market was aligned for an increase of 1.9% in Oct 2016, compared with the same month a year ago. However, the result was a bit lower, as there was a rise of 1.8% reported. Moreover, the report stated that the “annual growth rate of the broad monetary aggregate M3 decreased to 4.4% in October 2016, from 5.1% in September (revised from 5.0%). “
Overall, the EURAUD may continue to gain traction and trade higher as long as it stays above the 1.4220 support area.
