Fundamental Analysis of EUR/AUD for January 11, 2018
EUR/AUD has been impulsively bearish recently after bouncing off the 1.5400 price area and dynamic level of 20 EMA. AUD has been quite positive with the economic reports which helped the currency to gain momentum over EUR which is struggling to make an impact on the bullish growth. Today AUD Retail Sales report was published with a significant increase to 1.2% from the previous value of 0.5% which was expected to decrease to 0.4%. The increase in Retail Sales helped the currency to gain impulsive momentum over EUR which is expected to continue further in the coming days. On the other hand, today EUR Italian Retail Sales report is going to be published which is expected to increase to 0.8% from the previous negative value of -1.0%, Industrial Production report is expected to increase to 0.8% from the previous value of 0.2% and ECB Monetary Meeting Accounts report is going to be published today as well which is expected to be quite neutral in nature. Despite having a good forecast for the upcoming economic reports of EUR today, AUD has been quite impulsive with the gains already which would be pretty tough for EUR to recover from. As of the current scenario, AUD is expected to gain more momentum in the coming days taking the price much lower.
Now let us look at the technical view. The price has been bearish since it bounced off the dynamic level rejecting it for several times before it finally started to be impulsive with the gains. There has been a lot of corrections along the way but due to today’s positive economic reports, AUD gained the momentum which is required to dominate EUR for the coming days. As the price remains below 1.5400 and dynamic level of 20 EMA with a daily close the bearish bias is expected to continue further.
The material has been provided by InstaForex Company – www.instaforex.com
Source:: Fundamental Analysis of EUR/AUD for January 11, 2018