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EUR/AUD testing bottom of channel’s range

FXStreet (Guatemala) - EUR/AUD is trading at 1.4291, down -0.02% on the day, having posted a daily high at 1.4297 and low at 1.4287.

EUR/AUD is testing the bottom of the channels rage and below the 1.43 handle with markets reaffirmed by ECB President Draghi’s testimony before the Committee on Economic and Monetary Affairs, in Brussels, relating to their continued requirement in Europe of monetary easing but possibly expanding the purchase program by including government bonds, sending EUR lower.

Also, the has been chatter around China’s and Australia’s free trade agreement being signed next year and for it to commence in and around four years time which will allow the AUD/CNY to trade freely without needing the greenback as a vehicle. This will aid Australia’s economy in respect of opening up a huge market for their exports of commodities into China where tariffs of 95% of Australian products will be removed for importers.

Ipek Ozkardeskaya, FX Analyst at Swissquote Bank explained, technically, that EUR/AUD sees resistance at 1.43350/1.44035, area including daily Ichimoku cloud top, 21, 50 and 100-dma. “The 21-dma crossed below the 50-dma increasing downside pressures from the technical traders. Support is eyed at 1.41500/1.42054 (October downtrend base / daily Ichi base)”.

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