EUR/AUD Price Analysis — January 7


The EUR/AUD traded on a sideways momentum around 1.5835 on Thursday, amid chaos in US Capitol.

The Euro has been largely influenced by movement in rival currencies. However, the Eurozone’s upbeat economic recovery outlook continues to steady the currency against drastic fluctuations in rival currencies.

Meanwhile, this week’s EUR/AUD price movement has been directed by the Aussie, as today’s better-than-expected Eurozone data failed to make any dent to the price dynamics of the EUR. German factory orders from November performed better than forecasts, as it beat an expected contraction and came in at 2.3%. However, the Eurozone Construction PMI was worse than expected at 45.5.

The optimism that the Coronavirus vaccines will bolster the recovery of the Eurozone economy continues to provide support for the EUR.

In other news, the Aussie—which is highly correlated to market risk sentiment—has been on a roll this week following recent developments in global politics and the COVID-19 pandemic.

Chaos erupted in DC, USA yesterday, as dissatisfied Trump supporters broke into the Congress building to protest the recent US election results. The mob was incited by US President Donald Trump, who continues to wrongfully claim—according to official sources—that the election was ‘stolen’ from him.

Investors with more risk tolerance are expected to continue buying the AUD, once the political unrest in the US quells.

EURAUD – 4-Hour Chart

EUR/AUD Value Forecast — January 7

EUR/AUD Major Bias: Sideways

Supply Levels: 1.5900, 1.6000, and 1.6100

Demand Levels: 1.5800, 1.5675, and 1.5600

The EUR/AUD continues to stall around the 1.5800 crucial support, indicating that bears are losing power. Not surprisingly, this consolidation is happening near the base of our descending channel, and we expect a correction to the upside (1.6100) in the coming days and weeks.

Meanwhile, the MACD indicator shows that the pair is currently in oversold conditions, and a correction to more neutral conditions might be underway.

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
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit

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
  • 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
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
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.