Forecast of the currency pair EUR / AUD
Today we will focus on the EUR / AUD currency pair. By the opening of the European trading session, sellers managed to overcome the psychological support level of 1.6600. Let me remind you that the overall strengthening of AUD is due the release of better than expected inflation figures in Australia. The annual rate increased by 0.4% to 2.2% with a projected increase of up to 2.0%.
Trading look:
The main scenario.
Given the breakthrough of support at 1.6600 and the lack of demand above this level, there is still a risk of a further weakening of the pair to 1.6440. A return to 1.6580 will increase the likelihood of a bearish scenario.
Alternative scenario.
This scenario takes into account the development of growth from current levels with the first goal at 1.6740. I would like to draw your attention to the fact that the Fibonacci correction level of 23.6% passes the marked resistance level. The next target for buyers is 1.6810.
A bearish scenario is possible if weak inflation data is published in Germany.In this case, the EUR will be under additional pressure from sellers. I expect an increase in trading activity by the end of the European session.
The above review is not a direct guide to action, but carries an exclusively recommendatory nature.