Key Points
- The Euro surged higher against the Aussie dollar, and moved above the 1.3900 resistance.
- The EURAUD pair broke a couple of resistances likes 1.3880 and a connecting trend line at 1.3875 on the hourly chart.
- Today, the German Retail Sales for Jan 2017 was released by the Statistisches Bundesamt Deutschland.
- The result was better than the forecast, as there was a rise of 2.3% in Jan 2017, compared with the same month a year ago.
EURAUD Technical Analysis
The Euro climbed higher during the past two sessions against the Aussie dollar and traded as high as 1.3939. During the upside move, the EURAUD pair cleared a few important resistances likes 1.3850, 1.3880 and a trend line at 1.3875 on the hourly chart.
The same trend line may now act as a support at 1.3890 if the pair corrects lower. It also coincides with the 23.6% Fib retracement level of the last wave from the 1.3726 low to 1.3939 high.
On the upside, the recent high of 1.3939 is an intermediate resistance before the 1.3960 hurdle.
German Retail Sales
Today in the Euro Zone, the German Retail Sales for Jan 2017 was released by the Statistisches Bundesamt Deutschland. The market was expecting the sales of the German retail sector to increase by around 2% in Jan 2017, compared with the same month a year ago.
The outcome result was better than the forecast, as there was a rise of 2.3% in Jan 2017. However, the monthly change was on the lower side, as there was a decline of 0.8%. The report added that “When adjusted for calendar and seasonal variations (Census-X-12-ARIMA), the January turnover was in real terms 0.8% and in nominal terms 0.2% smaller than that in December 2016 “.
Overall, the Euro may resume the uptrend soon vs the Aussie dollar, and could challenge the next resistance at 1.3960.
