Thin volumes are giving EURAUD a break after lots of volatility, though trapped in a consolidation pattern. Learn from the 16 February EURAUD Technical Forecast how the pair will trade today.
16 February, GKFX – EURAUD is trading softly in Asia, up slightly in Tokyo markets and testing 1.5750 as of writing.
Volumes are thin for EURAUD today following two days of volatile swings, but with a lack of direction the pair has continued to tread familiar waters, though the Aussie is giving up ground following statements from the Reserve Bank of Australia’s (RBA) Governor Lowe, who reinforced the RBA’s wait-and-see strategy for raising interest rates.
With economic data for Australia continuing to middle and lag behind other global economies, the central bank’s hands are tied while economic competitors like the US, the UK, and the Eurozone race to begin tightening down following a decade of easy monetary policy.
16 February EURAUD Technical Forecast
With the past two weeks marked by volatility, the pair is trading in a rough channel with support-resistance boundaries at 1.4650 and 1.5780 respectively; intraday trading will be challenged to make new ground by yesterday’s low of 1.5675 and 1.5805 at the high. Failure to break above long-term support at 1.5775 could send EUR/AUD back down to the 34-day EMA, currently priced in at 1.5528.
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