This week EURAUD had numbers of impulsive bearish move bouncing off from 1.5025 to currently at the edge of 1.4880 support level. Today AUD had negative Trade Balance report with the worst figure at 0.56B which was expected to be at 1.91B. Previously the Trade Balance was at 3.17B and with that aspect, a decrease in Trade Balance report indicates the decrease in Export Demand of the products as well as the currency and it also impacts the production and prices at the domestic manufacturers. Despite having worst Trade Balance report AUD is seen to continue its gain till now against EUR today. On the other hand, today Eurozone had a series of positive reports till now like German Industrial Production was published at 0.8% which was expected to be at 0.6%, French Trade Balance was published with a better figure at -5.5B which was expected to be at -5.9B and Revised GDP also showed rise to 0.6% which was expected to be unchanged at 0.5%. Moreover, today Eurozone Minimum Bid Rate report is going to be published which is expected to be unchanged at 0.00% and along with that ECB President Draghi is going to have a speech today about the policy decisions and recent interest rate. During the event, a good amount of volatility is expected to hit the market and provide direction about the upcoming move in the market in the coming days.
Now let us look at the technical view, the price is currently in a non-volatile bearish trend and it has already broken below the 20 EMA support with a daily close. Currently, the price is just at the edge of 1.4880 support level and today if we see a daily close below the 1.4880 support we will be looking forward to selling with a target towards 1.4600 area. The pair is currently in bearish bias and it is expected to continue until price takes out 1.5100 with a daily close above it.
