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.