Key Points
- The Euro traded lower against the Aussie dollar and tested the 1.4640 support area where buyers appeared.
- The EURAUD pair remained in a downtrend, and currently facing sellers near a bearish trend line on the hourly chart.
- Today in the Euro Zone, the France Business Climate was released by INSEE.
- The market was not expecting any change from the last reading of 101, but there was a rise to 103 in Sep 2016.
EURAUD Technical Analysis
The Euro was seen under pressure during the past 2-3 sessions against the Aussie dollar, as the EURAUD pair traded below the 1.4700 support area. There is a bearish trend line on the hourly chart of EURAUD, which is acting as a resistance and pushing the pair lower.
The pair is currently finding bids near 1.4650, and attempting to correct higher. However, the same trend line is acting as a hurdle and preventing an upside move.
On the downside, the recent low of 1.4638 may be seen as a support area. A break below it may take the pair towards 1.4600.
France Business Climate
Today in the Euro Zone, the French Business Climate, which is a survey of the current business condition in France was released by INSEE. The market was not expecting any change from the last reading of 101 in Sep 2016.
However, the result was positive, as there was a rise to 103. The report stated that “According to the business managers surveyed in September 2016, the business climate in industry has improved. Already above its long-term average (100) since April 2015, the composite indicator has gained 2 points. At 103, it has returned to its July’s level”.
The Euro attempted a short-term recovery against the Aussie dollar, but the highlighted resistance trend line acted as a barrier for the bulls.
