EUR/AUD Price Analysis — November 12

EUR/AUD Price Analysis — November 12

The EUR/AUD traded on a bullish tone in the early European session on Thursday, amid growing numbers of Coronavirus cases across the Eurozone.

Global equity markets have been on a bull run this week following an upbeat COVID-19 vaccine announcement from pharmaceutical giant Pfizer (NYSE: PFE) and their German associate, BioNTech (NASDAQ: BNTX). However, the effect of the news has begun to wane as Covid-19 cases across Europe soar.

Meanwhile, Christine Lagarde, Chair of the European Central Bank, cautioned on Wednesday about getting over-optimistic by the vaccine news. She added that the continent could still witness a surge in coronavirus cases and stricter lockdown measures soon.

Later today, investors’ attention will be on the virtual ECB Forum on Central Banking, where Lagarde will be headlining the event with Fed Chief Powell and BoE Governor Bailey.

In other news, China remains defensive over the Australian push to an inquiry, claiming that negligence on the part of Asian leaders led to the COVID-19 outbreak. After raising bars for Australian wine, iron ore, and barley, the Asian giant has suspended Victorian timber logs indefinitely.

Additionally, US National Security Adviser Robert O’Brien’s oblique warning to China over the long-drawn Hong Kong Security Bill has exerted more pressure on the already embattled AUD.

EURAUD – 4-Hour Chart

EUR/AUD Value Forecast — November 12

EUR/AUD Major Bias: Bullish

Supply Levels: 1.6330, 1.6400, and 1.6512

Demand Levels: 1.6200, 1.6100, and 1.6000

The EUR/AUD has entered a bullish wave, given the recent Aussie weakness. The pair found additional buyers after it bounced off the base of our descending channel, which is an indication that we could see a retest of the 1.6330 resistance. Subsequently, we could see the price approach 1.6400— the top of our channel.

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Author : Azeez Mustapha

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