5 Nov 2013
EUR/AUD soars as RBA cited Aussie uncomfortably high
FXstreet.com (Athens) – The EUR/AUD has been trading steadily higher in the overnight session, as RBA left rates unchanged but also provided a statement that honed in on the high Aussie.
EUR/AUD soars as RBA does not feel comfortable with high AUD
The EUR/AUD had been trading around 1.4210 area since the kick off of the Asian trading session, but well after, as the RBA reiterated the overvalued price of the Aussie, the single currency made a spike higher near 1.2450 area.
Briefly, the RBA left the benchmark rate unchanged, mentioning that the current settings remain appropriate. The noteworthy part of the RBA Statement as the above mentioned were in broader lines with market participants expectations, was the reiteration that “Australian Dollar is still uncomfortably high.”
Technical perspective on EUR/AUD
The cross managed today, ahead of ECB conference, to trend higher, hovering now well above the confluence of the 50-daily EMA (1.4344), the 20-daily EMA (1.4319) as well as the 10-daily EMA (1.4310) at the area as of 1.4310-1.4344.
However, as long as the pair is well under the area 1.4480/1.4560 (where lies a strong resistance area, since the decline started from within that levels), the downwards bias will probably remain. Below the area as of 21st October there might be sizeable stop loss orders, so a decent clear of that area, may dragged down the cross abruptly lower near 1.4100 level. Upwards, the resistance of 1.4248 should be breached, in order the pair to move higher.
EUR/AUD soars as RBA does not feel comfortable with high AUD
The EUR/AUD had been trading around 1.4210 area since the kick off of the Asian trading session, but well after, as the RBA reiterated the overvalued price of the Aussie, the single currency made a spike higher near 1.2450 area.
Briefly, the RBA left the benchmark rate unchanged, mentioning that the current settings remain appropriate. The noteworthy part of the RBA Statement as the above mentioned were in broader lines with market participants expectations, was the reiteration that “Australian Dollar is still uncomfortably high.”
Technical perspective on EUR/AUD
The cross managed today, ahead of ECB conference, to trend higher, hovering now well above the confluence of the 50-daily EMA (1.4344), the 20-daily EMA (1.4319) as well as the 10-daily EMA (1.4310) at the area as of 1.4310-1.4344.
However, as long as the pair is well under the area 1.4480/1.4560 (where lies a strong resistance area, since the decline started from within that levels), the downwards bias will probably remain. Below the area as of 21st October there might be sizeable stop loss orders, so a decent clear of that area, may dragged down the cross abruptly lower near 1.4100 level. Upwards, the resistance of 1.4248 should be breached, in order the pair to move higher.