11 Apr 2014
EUR/AUD failing on the upside
FXStreet (Guatemala) - EUR/AUD is trading at 1.4749, up 0.03% on the day, having posted a daily high at 1.4768 and low at 1.4749.
EUR/AUD is a big figure higher since the fall overnight and Jane Foley, Senior Currency Strategist at Rabobank, explained that they expect the EUR to retain its resilient tone, even though there is a risk that the ECB will act again on policy to stave off deflationary risks. “The ECB has indicated that QE may now be a tool it would consider using. Ordinarily the threat of further accommodative monetary policy action is associated with downside potential of the currency. However, if investors consider that QE means that prices of Eurozone assets can rally further, this could be construed as having a supportive impact on the EUR. The implication is that further easing from the ECB this year may not automatically serve to weaken the EUR”.
EUR/AUD overbought territory
EUR/AUD spot is in overbought territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish. RSI is in neutral territory at 62.59, up from it’s last hourly close at 57.34, while ADX is ranging above 30 at 23.51, down from 43.00 at the last hourly close.
EUR/AUD Levels
Current price is 1.4756, with resistance ahead at 1.4758 (Hourly 100 SMA), 1.4768 (Daily High), 1.4786 (Yesterday's High), 1.4797 (Daily Classic R1) and 1.4803 (Weekly Classic PP). Next support to the downside can be found at 1.4752 (Daily Open), 1.4749 (Daily Low), 1.4744 (Daily Classic PP), 1.4739 (Monthly Low) and 1.4739 (Weekly Low).
EUR/AUD is a big figure higher since the fall overnight and Jane Foley, Senior Currency Strategist at Rabobank, explained that they expect the EUR to retain its resilient tone, even though there is a risk that the ECB will act again on policy to stave off deflationary risks. “The ECB has indicated that QE may now be a tool it would consider using. Ordinarily the threat of further accommodative monetary policy action is associated with downside potential of the currency. However, if investors consider that QE means that prices of Eurozone assets can rally further, this could be construed as having a supportive impact on the EUR. The implication is that further easing from the ECB this year may not automatically serve to weaken the EUR”.
EUR/AUD overbought territory
EUR/AUD spot is in overbought territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish. RSI is in neutral territory at 62.59, up from it’s last hourly close at 57.34, while ADX is ranging above 30 at 23.51, down from 43.00 at the last hourly close.
EUR/AUD Levels
Current price is 1.4756, with resistance ahead at 1.4758 (Hourly 100 SMA), 1.4768 (Daily High), 1.4786 (Yesterday's High), 1.4797 (Daily Classic R1) and 1.4803 (Weekly Classic PP). Next support to the downside can be found at 1.4752 (Daily Open), 1.4749 (Daily Low), 1.4744 (Daily Classic PP), 1.4739 (Monthly Low) and 1.4739 (Weekly Low).