EUR/AUD Price Analysis — November 19

The EUR/AUD traded on a bullish tone above the 1.6250, as the focus moved to the European Union (EU) summit set to hold later today, where leaders will likely push for a coronavirus recovery fund.

The Eurozone is on the brink of a renewed economic contraction with the second wave of the Coronavirus sweeping across the currency bloc. That said, a decisive fiscal response is needed to bolster the EUR in the near-term.

According to a recent interview by Reuters, an unnamed French official said that European leaders could forge ahead with the post-COVID-19 recovery fund and EU budget without Hungary and Poland if the two countries continue to delay adopting the proposed long-term budget.

A budget deal will immediately ease the pressure on the European Central Bank to implement additional easing measures and boost inflation expectations, which will improve the demand for Euro.

Meanwhile, Australia’s handling of the Coronavirus outbreak remains very effective and successful. Also, Victoria is opening up and has boosted new jobs recorded in October, as the country announced a whopping +179K jobs as opposed to the expected -30K.

However, the tensions between China and Australia continue to escalate even though both nations recently signed the RCEP ‘free trade agreement.’ This rift has caused the Aussie to suffer some weakness in the meantime.

EUR/AUD Value Forecast — November 19

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 picked some bullish steam, following its recent rejection from the 1.6200 psychological support. We expect to see a healthy stride towards the top end of our descending channel around 1.6400 as the EUR to find some support from the EU meeting later today.

However, it is worth mentioning that the pair has been in a consolidation range between 1.6200 and 1.6330 for the past few days. That said, a decisive break above the 1.6330 resistance should confirm our upward bias.

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