EUR/AUD Price Analysis — January 28

28 January 2021 | Updated: 28 January 2021

The EUR/AUD traded on a very bullish momentum in the early European session on Thursday, as the prevailing market risk mood has sent the Aussie on a bearish spiral against other major currencies.

Germany reported yesterday that the country’s Business Confidence has dropped from 92.2 in December to 90.1 in January. This decline has placed some pressure on the euro over the past few hours.

Today, market participants will be looking at the Euro Area Consumer Confidence report for January. Speculators expect the Consumer Confidence report to drop from -13.9 in December to -15.5 in January because of the economic fallout from the second wave of the coronavirus in Europe.

The price dynamics of the euro is now at the mercy of the upcoming economic reports from the EU.

Meanwhile, ECB Governing Council Member, and Dutch Governor, Klass Knot has made some comments that suggest that the ECB is ready to implement further negative rates if needed.

In other news, Australia’s Import Price Index and Export Price Index for the fourth quarter should give Aussie traders some insight into what the currency could do in the near-term. It is worth mentioning that the price dynamics surrounding the AUD will be dictated by developments on the ongoing US-China tussle, coronavirus updates, and vaccine news.

EURAUD – 4-Hour Chart

EUR/AUD Value Forecast — January 28

EUR/AUD Major Bias: Bullish

Supply Levels: 1.6000, 1.6100, and 1.6200

Demand Levels: 1.5800, 1.5675, and 1.5600

The EUR/AUD has maintained a bullish streak since the emergence of the double-bottom pattern last week. Following a modest retrace from the 1.5800 resistance (now support) to the 1.5675 level, the currency pair initiated a strong rebound to the 1.5900 area where it currently lies.

However, the pair has now reached the top of our descending channel, suggesting that a significant decline could be just around the corner. That said, the EUR/AUD could negate this channel if this bullish momentum takes it back into the 1.6000 pivot zone.

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
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$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
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.