EUR/AUD has been impulsive with the bullish gains today which led the price to breach above the 1.55 resistance area. Today, AUD struggled with the partially worse economic reports which led EUR to gain impulsive momentum having mixed economic report results. Today, EUR Spanish Manufacturing PMI report was published with a decrease to 55.2 from the previous figure of 55.8 which was expected to be at 55.7, Italian Manufacturing PMI showed an increase to 59.0 from the previous figure of 57.4 which was expected to be at 57.7, French Final Manufacturing PMI report showed a slight increase to 58.4 which was expected to be unchanged at 58.1, German Final Manufacturing PMI report showed a slight decrease to 61.1 which was expected to be unchanged at 61.2, and EUR Final Manufacturing PMI was published unchanged at 59.6. On the other hand, today, AUD AIG Manufacturing Index report was published with an increase to 58.7 from the previous figure of 56.2, Building Approvals report showed a significant decrease to -20.0% from the previous positive value of 12.6% which was expected to be at -7.9%, and Import Price showed an increase to 2.0% from the previous negative value of -1.6% which was expected to be at 1.5%. As of the current scenario, having a high impact economic report like Building Approvals results to negative on the AUD side, EUR gained momentum despite having mixed economic reports. This explains the weakness of AUD against EUR which is expected to continue further in the coming days until AUD comes with any strong high impact positive economic report or event to counter the bullish pressure in the pair.
Now let us look at the technical view. The price has already breached above the 1.55 price level which is currently expected to be proceed higher followed by a retest off the level with a daily candle in the coming days. Certain period of correction is expected before the price bounces higher towards the 1.5750 price area in the future. As the price remains above the 1.53 area, the bullish bias is expected to continue further.
