EUR/AUD Price Analysis — October 8

EUR/AUD Price Analysis — October 8

The price action surrounding the EUR/AUD continued on its back-and-forth sentiment on Thursday, as the global markets continue to experience a deficit of volatility or market-moving events.

Meanwhile, the publication of ECB’s Accounts indicated that the recent appreciation of the exchange rate did not go unnoticed by members of the Governing Council. The Accounts reported that interest rate cuts and adjustments to the Targeted Long Term Repo Operations (TLTROs) conditions are still on the bank’s arsenal. The Accounts also reported a strong consensus among members of the central bank that substantial stimulus remained a necessity.

On another front, the remaining strength in the euro (EUR) continues to be underpinned by promising results from domestic fundamentals (which have also been bolstering a strong economic recovery for Europe following the pandemic-induced slump in the spring) like the reluctant stance from the ECB and the solid position of the EMU’s current account.

In other news, a recent better-than-expected data release from Australia showed that the ANZ Business Confidence in this month increased to -14.5 from -28-5 in September. Furthermore, the ANZ Activity Outlook spiked from -5.4% to 3.6% and has bolstered the strength of the Aussie (AUD) against its rival currencies.

EURAUD – Hourly Chart

EUR/AUD Value Forecast — October 8

EUR/AUD Major Bias: Bearish

Supply Levels: 1.6512, 1.6567, and 1.6700

Demand Levels: 1.6300, 1.6200, and 1.6100

The EUR/AUD is currently under heavy sell pressure considering the recent EUR weakness. At press time, the pair is trading at 1.6409, after failing to break the 1.6512 resistance on several attempts. Following its fall from the 1.6512 resistance, the EUR/AUD has found strong support at the 1.6400 line.

We expect a retest and break below this support in the coming hours, as the AUD remains well-supported by some fundamental factors.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
Share with other traders!

Author : Azeez Mustapha

Avatar

Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.