EURAUD is testing a key support zone around the base of its current trading channel ahead of some Australian and European economic data. This level may prove to be a strong support level for the pair, but there are some technical signs that suggest price may break through (be wary of a false breakout). In which case, our bias would shift firmly into bearish territory in the near-term. However, if price rebounds of this support level it may make a run for the top of its trading channel (see chart).
Data watch
- NAB Q2 Business Confidence Index (0130GMT) – prior 6
- RBA FX transactions June (0130GMT)
- Eurozone CPI June – exp. 0.1% m/m; 0.5% y/y
Support
- Channel support, currently around 1.4430
- 1.4395
- 1.4360 – 2014 low
Source: FOREX.com
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