EUR/AUD drops to 17-month low post Australia CPI release
|Better-than-expected Australia CPI release and the resulting drop in RBA November rate cut bets is pushing Aussie higher across the board. EUR/AUD fell to 1.4127 (lowest since May 2015) and was last seen trading around 1.4147 levels.
Eyes 50% Fibo support
The cross appears on track to test support at 1.4095, which is 50% Fibonacci retracement of the rally from August 2012 low to August 2015 high. Demand for Aussie spiked after Australia Q3 inflation data bettered estimates. This pushed RBA Nov rate cut bets down to 6% from 15%.
A moderate drop in EUR/USD in Asia is also adding to the bearish pressure around EUR/AUD cross.
EUR/AUD Technical Levels
Breach of support at 1.4095 (50% of Aug 2012 low-Aug 2015 high) would open doors for doors for a deeper sell-off to 1.40 – 1.3929 (May 2011 high). On the other hand, a breach of resistance at 1.42 (zero figure) would expose 1.4348 (Dec 2015 low) and 1.4467 (Mar 2016 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.