EURAUD – Euro Looks Set For More Declines

Key Points

• The Euro moved down against the Aussie dollar and may continue to decline in the short term.
• There is a crucial bearish trend line formed on the hourly chart of the EURAUD pair, which is acting as a hurdle for buyers on the upside.
• Earlier today, Italian EU Norm Inflation report was released by the Istat.
• There was a decline in the Italian CPI by 0.2% in July 2016, which was more than the forecast of -0.1%.

Technical Analysis

The Euro was under pressure during the past few hours against the Aussie dollar and traded below the 21 hourly simple moving average. There is a crucial bearish trend line formed on the hourly chart of the EURAUD pair, acted as a barrier and stalled gains.

Currently, the pair is attempting a close below the 61.8% Fib retracement level of the last leg from the 1.4410 low to 1.4525 high.

A break and close below it could push the pair further down may be towards the recent low of 1.4410.

– Guest Post Submitted By Aayush Jindal from the FXTimes Team