EUR/AUD Surges To The Multi-Month High
EUR/AUD opened today at 1.4528 with the strong bullish pressure taking the price to 1.4613, the high of June, while breaching the resistance around 1.4585. Following the release of Chinese trade data, the Australian dollar appreciated against the Euro and dragged the price back to 1.4548.
As of this writing, the pair is being traded at 1.4507 heading towards the 1.4476 support area, the 50% fib level. The overall bias is bullish that seems to end. Currently, bulls and bears are exerting the same pressure and causing the price to stay between 1.4518 and 1.4507. The bullish wave that started on Sep 8th seems to face major hurdles around the current levels.
Fundamental Analysis
For euro, the economic calendar contains two releases today.
Wholesale Price Index (YoY)
The yearly wholesale price index is -0.9% for this September, as released by the Statistisches Bundesamt Deutschland as compared to the August reading i.e. -0.6, the current reading was not that much promising. Generally speaking, a higher (positive) reading is considered bullish and a lower (negative) reading is considered bearish for the euro.
Wholesale Price Index (MoM)
The monthly wholesale price index came out positive at 0.1 as compared to the -0.2, the previous month reading. Generally speaking, a high reading is considered bullish while a low reading is considered bearish
Today’s economic calendar brought nothing for AUD specifically but there were some important releases by china that are believed to impact the global economy.
China Imports
The imports of China increased to 7% this September, against the expectations of -2.7% as compared to -2.4, the August reading, the change is quite positive and hints at increased domestic demand in China.
Exports
The Exports of the China jumped to 15.3% from 9.4%, the August reading. It missed the expectations of analyst which was 11.8%. The import and export data leaves the trade balance at $31.00B which is although less than that of the previous month i.e. $49.83B, is considered positive as it is showing moderate economic growth that is good for the global economy.
Trade Idea
Having seen both technical and fundamental view, selling the pair around the1.4490 zone can be profitable in short-term unless the support is breached at 1.4576