- The Euro remained under serious bearish pressure, and moved below 1.4700 against the Aussie Dollar.
- The EURAUD pair is now following a descending channel with resistance at 1.4750 on the hourly chart.
- The German Gross Domestic Product for Q1 2017 released by the Statistisches Bundesamt Deutschland posted a rise of 0.6%, just as the market expected.
EURAUD Technical Analysis
The Euro after trading towards 1.4900 against the Aussie Dollar faced offers, and started a downside move. The decline was such that the EURAUD pair failed to hold a major support at 1.4800.
The pair even traded below the 1.4740 support. It recently started a recovery from 1.4693, which failed near 1.4810.
The pair is again moving lower, and already below the 76.4% Fib retracement level of the last wave from the 1.4693 low to 1.4815 high.
It means there is a chance that the pair may decline further towards the 1.4650-40 support.
EURAUD Hourly Chart
At the moment, the pair is following a descending channel with resistance at 1.4750 on the hourly chart.
It is likely to decline towards 1.236 extension of the last wave from the 1.4693 low to 1.4815 high at 1.4665, which also coincides with the channel support.
So, there can be a minor rise in EURAUD from 1.4660, but the overall trend remains bearish in the short term.
German Gross Domestic Product
Today in the Euro Zone, the German Gross Domestic Product for Q1 2017 was released by the Statistisches Bundesamt Deutschland. The market was expecting an increase of 0.6% in the GDP in Q1 2017, compared with the previous quarter.
The actual result was in line with the forecast, as GDP increased 0.6%. Looking at the yearly change, the GDP grew by 1.7%, which was less than the last revised +1.8%.
The report published added that:
Economic growth accelerated year on year, too. The price-adjusted GDP in the first quarter of 2017 was up by 2.9% compared with the same quarter of 2016. Upon adjustment for the exceptionally strong calendar effects due to the timing of public holidays, the GDP increased by 1.7%, which corresponds largely to the calendar-adjusted growth rates of the previous year (+1.7% in the third quarter and +1.8% in the fourth quarter of 2016).
Overall, the EURAUD pair is likely to extend the current decline and it might even test the 1.4640 level in the near term.