Not very bullish outlook for the cross is ahead in the eyes of Westpac bank, strategist Sean Callow says: “Our base case for a decline in both AUD/USD and EUR/USD into year end implies most EUR/AUD trade is contained within a muted 1.22-1.25 range. In early 2013 however, the prospects are increasingly negative for EUR/AUD as the end of the RBA easing cycle looms while the Eurozone recession drags on and Greece and Spain continue to weigh,” Sean notes. EUR/AUD is slightly underwater for the year, mostly flat within a broad range 1.30/1.16.
Immediate resistance to the upside for EUR/AUD shows at recent weekly highs/June 19 lows 1.2358, followed by Oct 29 lows at 1.2442, and Oct 11 lows/Jan 25 highs at 1.25 round. To the downside, nearest term support lies at yesterday's/March 02 lows 1.2256, followed by Sept 10/Jan 17 lows at 1.2221, and Nov 14/Feb 16 lows at 1.2147/37.






