Fundamental Analysis of EUR/AUD for May 5, 2017

EUR/AUD has been in a non-volatile bullish impulsive pressure after the break above 1.4600 resistance level. Recently EUR has been quite positive in economic reports in comparison to AUD and the chart itself showing its evidence now. Today AUD AIG Construction Index report has been published with an increased value at 51.9 which previously was at 51.2 and in RBA Monetary Policy Statement today was dovish for the currency. On the other hand, EUR Retail PMI report was published today with an increased value at 52.7 which previously was at 49.5. In this pair, both of the currencies showed a positive figure in economic reports published today but AUD is expected to gain some strength against EUR in the coming days.

Now let us look at the technical view, the price has recently rejected from the resistance level of 1.4880 and we can see a bearish engulfing bar on the intraday chart. Currently, it is expected that the price will retrace down towards 1.4600 support level and if we see any bearish rejection off the level we will be looking forward to buying with a target towards 1.50 resistance level.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Fundamental Analysis of EUR/AUD for May 5, 2017