EUR/AUD has been volatile and corrective below 1.5750 price area for a few days. Now the pair is expected to proceed lower in the coming days. AUD has been quite dominant today despite downbeat economic reports whereas EUR is struggling to sustain its gains. Ahead of Australia's high impact economic report, Private Capital Expenditure report to be published with unchanged value of 1.0%, today Australia's Private Sector Credit report was published with an unchanged value of 0.3% which was expected to increase to 0.4%. The worse economic report provided a positive push to EUR for a while but it did not sustain well enough after mixed economic reports from the eurozone. Today German Gfk Consumer Climate report was published as expected at 10.8, decreasing from the previous figure of 11.0, French Consumer Spending decreased to -1.9% from the previous value of -1.2% which was expected to increase to 0.5%, French Prelim CPI was unchanged at -0.1% which was expected to increase to 0.3%, French Prelim GDP was published unchanged as expected at 0.6%, and German Unemployment Change report was published better than expected. Moreover, the eurozone's CPI Flash Estimate was published as expected at 1.2% decreasing from the previous value of 1.3% and Core CPI Flash Estimate report was published unchanged at 1.0%. As for the current scenario, AUD is expected to take the lead whereas upcoming Australia's economic reports are expected to be quite optimistic as forecasted. Otherwise, EUR may struggle further to sustain its gains further. Until the eurozone comes up with strong high impact economic reports in the coming days, AUD is expected to continue its dominating pressure.
Now let us look at the technical view. The price currently residing at the edge of dynamic level of 20 EMA support from where the price is expected to proceed lower towards 1.55 support area. Today the bearish pressure was quite impulsive which engulfed previous bullish price action quite easily and expected to proceed much lower as well. As the price remains below 1.5750 price area with a daily close, the bearish bias is expected to continue further.
