The EUR/AUD pair traded with a slightly bearish tone in the early European session on Thursday, as investors take trading clues from the broader market risk mood.
Earlier today, the DAX futures contract in Germany traded up by +0.1%, CAC 40 futures in France was up by +0.1%, and the FTSE futures contracts in the UK climbed by 0.1%, as well.
Meanwhile, Credit Agricole (OTC: CRARY) reported a net income of €124 million in the fourth quarter, despite its recent goodwill charge at its Italian arm. Nonetheless, the Paris-based bank noted that the worst of the pandemic was now behind us.
However, German lender Commerzbank (DE: CBKG) announced a pessimistic forecast for the year, noting that its revenue will likely shrink “slightly” in 2021, as the bank reported a quarterly loss of €2.7 billion.
That said, the mixed sentiment in the European equity markets, coupled with the recent dovish speech by ECB Chair Christine Lagarde, put the Euro in a defensive position against other major currencies and could foment additional declines in the currency.
In other news, the cautious market mood undermined the risker Aussie and exerted some pressure on the currency.
However, the AUD found some support from the recent comments from Australian Treasury Secretary Steven Kennedy, where he asserted that the Australian economy was recovering faster than anticipated. Furthermore, the Australian Consumer Inflation Expectations for February climbed higher to 3.7% from 3.4%, providing an additional boost for the Aussie.
EUR/AUD Value Forecast — February 11
EUR/AUD Major Bias: Bearish
Supply Levels: 1.5675, 1.5700, and 1.5750
Demand Levels: 1.5600, 1.5500, and 1.5400
The EUR/AUD continues on its range-bound momentum between 1.5700 and 1.5630, as the pair struggles with sustaining a break above the 1.5675 resistance. Given the current market conditions, the EUR/AUD will likely resume on a downwards journey along our descending channel to the 1.5300 support over the coming days and weeks.
That said, only a sustained break above the descending channel can flip the current bearish momentum currently in play with the pair.
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.
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