After the gap since early this week and massive long positions on EUR/AUD, the price is now rejecting buyers off the 1.4600 resistance level. Today, we had mixed economic report on AUD side. PPI was published unchanged at 0.5% which was expected to be at 0.3% and Private Sector Credit was also unchanged at 0.3% which was expected to be at 0.5%. On the EUR's front, French Flash GDP was recently published with a decreased value at 0.3% which was expected to be unchanged at 0.4%. Besides, German Retail Sales report is going to be published soon, so retail sales are expected to decrease by 0.1% from the previously 1.8% gain. Among other reports from the eurozone, we also have Spanish Flash GDP which is expected to be unchanged at 0.7%. The eurozone's M3 Money Supply is also expected to be unchanged at 4.7% and CPI Flash Estimate is expected to show a minor increase at 1.8% which previously was at 1.5%. The eurozone's Core CPI Flash Estimate is also expected to increase to 1.0% from 0.7% previously. Today, the economic calendar is tightly packed with fundamental data from the eurozone, which is due later today. Any positive or negative outcome of the reports can trigger high volatility in the market today. A daily close as well as the weekly close today will help to determine a further dynamic in this pair next month.
Now let us consider the technical view. The price has rejected from the resistance level of 1.4600 with a daily close yesterday. Currently, the price is below the resistance of 1.4600. If the price remains below the resistance with a daily close today, then we can expect the price to move down towards 1.4300 in the coming days. On the other hand, if the price closes above 1.4600 with a daily close today, then we might see a further upward movement towards 1.50 resistance area.
