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The Euro surged higher against the Aussie dollar as the latter one got weakened recently. The EURAUD pair climbed higher, but found resistance around an important area. It is currently correcting lower and might present a buying opportunity in the near term. There was a release lined up in Australian during the Asian session, as the Westpac Consumer Confidence pointing the level of sentiment that individuals have in economic activity reflecting respondents’ evaluations of their family finances over the past and coming year was released by the Faculty of Economics and Commerce Melbourne Institute. It registered a decline from the last reading of 99.5 to 96.2.
There is a major resistance trend line formed on the hourly chart of the EURAUD pair, which acted as a hurdle recently and caused a downside reaction. The pair is currently moving lower, but could find support around the 50% fib retracement level of the last leg from the 1.3837 low to 1.4018 high. However, there is no doubt that the highlighted trend line is a major barrier for the pair and might continue to stall the upside in the EURAUD pair. If it manages to settle above the same, then it might head towards the 1.4050 level. Any further gains might be limited as there is hardly any reason for the Euro to gain a lot in the near term.
If the EURAUD pair moves lower from the current levels, then 100 simple moving average might also come into play and help buyers.
Overall, one might consider selling rallies in the EURAUD pair as long as it is below the highlighted trend line.