Key Points
- The Euro climbed higher against the Aussie dollar recently and tested the 1.4900 area.
- There is a resistance and a support trend line formed on the hourly chart of the EURAUD pair, which may play a crucial role moving ahead.
- Today, the Australian trade balance released by the Australian Bureau of Statistics posted a trade deficit of -3,195M, more than the forecast of -2,000M.
- The RBA Interest Rate Decision was announced by the Reserve Bank of Australia today in which the central bank reduced the rates from 1.75% to 1.50%.
Technical Analysis
The Euro after a surge against the Aussie dollar towards the 1.4900 resistance area against the Aussie dollar found sellers and moved down. There was a bearish trend line on the hourly chart of the EURAUD pair, which prevented the upside move.
On the downside, the 21 hourly simple moving average along with the 61.8% Fib retracement level of the last leg from the 1.4670 low to 1.4905 may act as a support area.
On the upside, we can keep an eye on the resistance trend line as a hurdle for more gains.
Australian Trade Balance
Earlier today during the Asian session, the trade balance, which is the difference in the value of its imports and exports of Australian goods was released by the Australian Bureau of Statistics.
The forecast was slated for a trade deficit of -2,000M in June 2016, compared with the last -2,418M (revised). However, the outcome was disappointing, as the trade deficit was 3,195M. The report added that “In trend terms, the balance on goods and services was a deficit of $2,359m in June 2016, a decrease of $14m (1%) on the deficit in May 2016. In seasonally adjusted terms, the balance on goods and services was a deficit of $3,195m in June 2016, an increase of $777m (32%) on the deficit in May 2016”.
The Euro failed to capitalize against the Aussie dollar, but it remains supported on the downside.
