EUR/AUD looks ready to extend a short-term trend!
Think we’ll see pro-EUR moves in the next trading sessions?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
New Zealand’s centre-right National Party won Saturday’s general election; new PM Christopher Luxon to expected to conduct coalition negotiations
BusinessNZ services index broke three months of contraction and rose from 47.7 to 50.7 in September thanks to new orders
Rightmove house price index only slightly higher from 0.4% to 0.5% as U.K. home sellers increased their asking prices at the slowest pace for any October month since 2008
Japan’s industrial production revised lower from 0.0% to -0.7% in August
China conducted MLF operations that put a net 289 billion yuan of fresh liquidity in the banking system, the biggest net injection in almost three years
Price Action News
Overlay of NZD Pairs 15-min
A decisive election over the weekend helped propel NZD higher across the board at the start of the week.
It also helped the high-yielding NZD that China injected liquidity into its banking system and that traders were optimistic about diplomatic resolutions in the Israel-Hamas conflict.
NZD did hit a lowkey ceiling and traded in tight ranges during the early European session, but it remains one of the strongest currencies so far today.
Upcoming Potential Catalysts on the Economic Calendar:
Eurozone trade balance at 9:00 am GMT
Canada’s manufacturing sales at 12:30 pm GMT
U.S. NY manufacturing index at 12:30 pm GMT
BOC’s business outlook survey at 2:30 pm GMT
FOMC member Harker to give a speech at 2:30 pm GMT
New Zealand quarterly CPI at 9:45 pm GMT
RBA’s meeting minutes at 12:30 am GMT (Oct 17)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
EUR/AUD 15-min Forex Chart by TradingView
I don’t know if you’ve noticed but EUR/AUD has been giving us higher highs and higher lows since last week.
Think EUR/AUD can extend its short-term uptrend?
A lack of serious escalation in armed conflict between Israel and Hamas has encouraged some risk-taking in the markets. It also didn’t hurt that a pro-EU opposition in Poland looks set to win an election that started Sunday.
EUR/AUD, which got rejected at 1.6700, found support from the 1.6650 area and looks set for a bounce.
Take note that 1.6650 lines up with the S1 (1.6650) Pivot Point line and is close to the 200 SMA as well as a trend line support that’s been valid for days.
Continued optimism in the European region can extend EUR/AUD’s uptrend. The pair could make another run for the 1.6700 psychological handle and even make new October highs in the next trading sessions.
But if the RBA’s meeting minutes remind traders of the RBA’s relative hawkishness, or if we see an escalation in geopolitical headlines in the Middle East, then EUR/AUD could take more hits and break its short-term uptrend.
If AUD starts to gain on EUR, then you can wait for EUR/AUD to trade consistently below 1.6600 before you aim for potential moves lower.
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