EUR/AUD is currently residing at the edge of breaking above 1.5750 resistance area with a daily close in the coming days. EUR has been quite positive with the recent economic reports which helped the currency to gain momentum over AUD which has been struggling with its worse economic report results. Today EUR has been struggling with the economic reports having French Flash Manufacturing PMI report decreasing to 56.1 from the previous figure of 58.4 which was expected to be at 58.1, French Flash Services PMI decreased to 57.9 decreasing from the previous figure of 59.2 which was expected to be at 59.1, German Flash Manufacturing PMI report also showed decrease to 60.3 from the previous figure of 61.1 which was expected to be at 60.6 and German Flash Services PMI decreased to 55.3 from the previous figure of 57.3 which was expected to be at 56.9. Moreover, EUR Flash Manufacturing PMI report was published with a decrease to 58.5 from the previous figure of 59.6 which was expected to be at 59.2 and Flash Services PMI report decreased to 56.7 from the previous figure of 58.0 which was expected to be at 57.7. The worse economic report started to show its impact on the market already leading to impulsive AUD gains which might lead to certain indecision and correction in the market. On the AUD side, today Construction Work report was published with a significant decrease to -19.4% from the previous value of 16.6% which was expected to be at -9.8% but Wage price report was published with a slight increase to 0.6% which was expected to be unchanged at 0.5%. As of the current scenario, the pair is expected to be volatile and corrective for certain period of time before EUR takes over AUD with upcoming better economic reports and events in the coming days. As of the long-term perspective, EUR is expected to sustain the gains and push the price much higher in the future.
Now let us look at the technical view. The price has been struggling below 1.5750 for a few days now where the price has currently found support at dynamic level of 20 EMA rejecting off the 1.5600 price area. Despite having worse economic reports EUR is expected to gain momentum against AUD in the coming days as the price remains above 1.56 and dynamic level of 20 EMA with a daily close.
