- The Euro has formed a base near 1.3630 against the Aussie Dollar, and may continue higher in the near term.
- The EURAUD pair has cleared a monster bearish trend line with resistance at 1.4280 on the weekly chart.
- The Euro Zone Economic Sentiment Indicator for April 2017 released by the European Commission posted an increase from the last revised reading of 108 to 109.6.
EURAUD Technical Analysis
The Euro after a huge decline against the Aussie dollar from 1.65 to 1.36 found support. The EURAUD pair recently formed base near 1.3630, looking at the weekly chart.
There was a consolidation phase for some time above 1.3600 before the pair gained bids for further gains. It recently broke a major resistance near 1.4250-80 to start an upside move.
There was a clear break above the 23.6% Fib retracement level of the last decline from the 1.6584 high to 1.3631 low.
EURAUD Weekly Chart
Moreover, the pair also surpassed a monster bearish trend line with resistance at 1.4280 on the weekly chart.
These are positive signs and suggests that the pair may continue higher in the medium term and could even break past 1.4700.
The next resistance on the upside could be near the 38.2% Fib retracement level of the last decline from the 1.6584 high to 1.3631 low at 1.4759, which is also a pivot zone.
The Weekly RSI of EURAUD has just moved above 50, which is a bullish sign.
Euro Zone Consumer Confidence and Economic Sentiment Indicator
Today in the Euro Zone, there were a few releases for April 2017 like the Consumer Confidence Index and Economic Sentiment Indicator by the European Commission. The Consumer Confidence was slated to remain at -3.6 in April 2017.
The actual result stable, as Confidence remained at -3.6. The Economic Sentiment Indicator was expected to rise from 107.9 to 108.1 in April 2017. The result was above the forecast, as there was a rise from 108 (revised) to 109.6.
Similarly, the Business climate indicator posted a decent rise in April 2017 from the last revised reading of 0.83 to 1.09.
Overall, the EURAUD pair continues to trade higher in the medium term, and dips towards 1.4400-1.4300 remains supported.