EUR/AUD has been quite bearish in a non-volatile trend since it bounced off the 1.5770 resistance area. AUD has been the dominant currency for the last few months due to positive economic reports and events helping the currency gain momentum over EUR. Today EUR has been quite positive with the economic reports which helped the currency to recover some grounds against AUD but it is expected to be temporary in nature. Today, the Spanish Services PMI report was published with a slight increase to 54.6 from the previous figure of 54.4 (54.7 expected); the Italian Services PMI report revealed an increase to 55.4, which was predicted to be unchanged at 54.7; the French Final Services PMI decreased to 59.1, which was anticipated to be unchanged at 59.4; the German Final Services PMI was unchanged as expected at 55.8; and the Final Services PMI for the euro area showed a slight increase to 56.6, which was projected to be unchanged at 56.5. On the other hand, today Australia released the AIG Services Index report with an increase to 52.0 from the previous figure of 51.7, which was not quite sufficient to sustain the bearish pressure against EUR. As of the current scenario, despite having positive economic report from Australia, the Aussie failed to sustain its gains over EUR, but upcoming Australia's Trade Balance report will be published tomorrow and it is forecasted to have a significant increase to 0.55B from the previous figure of 0.11B. If the report comes positive, then AUD is expected to dominate EUR further in the coming days.
Now let us look at the technical view. The price is currently residing below the dynamic level of 20 EMA and a daily Engulfing Bar candle, which is expected to push further down towards the 1.5050-80 support area in the coming days. As the price remains below the 1.5500 price area and the dynamic level of 20 EMA, the bearish bias is expected to continue further.
