EUR/AUD Surges to 1.4870 on Weak Australian CPI
The EUR/AUD on Wednesday surged to 1.4870 level on the back of a surprise drop in Australian CPI print for March quarter.
According
to the data release today, Australian headline inflation fell by 0.2%
for the March quarter, well below consensus estimates of an increase of
0.2%. The surprise fall in the quarterly print left the annual increase
to just 1.3% as against expected 1.7%.
Technical levels to watch
Following
Wednesday’s sharp up-move, the pair has climbed to 1.4870 level,
marking 23.6% Fibonacci retracement level of its 1.6252-1.4436
downslide. A follow-up strength above 1.4870 level seems to assist the
pair to surpass 1.4920-30 intermediate horizontal resistance and head
towards a very important resistance near 1.4990-1.5000 psychological
mark.
On the flip side, any sign of profit-taking move is likely
to find immediate support near 1.4800 round figure mark. Even if the
pair fails to hold this immediate support, any further downside might
now be limited near 1.4725-20 horizontal support. Only a decisive
weakness back below 1.4725-20 support would categorize today’s pull-back
as a ‘dead-cat bounce’, thus triggering resumption of the pair’s
near-term downward trajectory.
