FxWirePro: EUR/AUD Extends Upside Into Daily Cloud, Focus on RBA Rate Decision

FxWirePro: EUR/AUD Extends Upside Into Daily Cloud, Focus on RBA Rate Decision

2 May 2016, 13:31
Roberto Jacobs
0
20

FxWirePro: EUR/AUD Extends Upside Into Daily Cloud, Focus on RBA Rate Decision

  • EUR/AUD extends upside into daily cloud after breaking strong trendline resistance at 1.4835 on last Wednesday's trade. 
  • Markets now focus on RBA's policy meet tomorrow, disappointingly weak CPI data in Australia sees a very strong potential for a rate cut in May. 
  • But, Australia's business conditions and confidence remain around elevated levels and continue to suggest that the business environment is positive at present. 
  • Technicals on daily charts support upside in the pair, price action in the pair has entered daily cloud. We see weakness only on break below cloud base currently at 1.4941. 
  • Our previous call (http://www.econotimes.com/FxWirePro-EUR-AUD-capped-below-150-handle-upside-only-on-breaks-above-201426) has hit target price:1 

Recommendation: Book partial profits, place stops at 1.4940, hold for 1.510/1.5160. 

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