EUR/AUD has been non-volatile with the bullish trend which did not have much deeper pullbacks along the way. Despite having worse economic reports EUR sustained its bullish momentum against AUD which does explain the weakness of AUD in comparison to EUR in the process. Recently EUR German Import Prices report was published with decrease to -0.6% from the previous value of 0.5% which was expected to be at -0.3%, Spanish Flash CPI failed to meet the expectation of an increase to 1.5% from the previous value of 1.1% whereas resulted at 1.2%, M3 Money Supply decrease to 4.2% from the previous value of 4.5% which was expected to increase to 4.6% and Private Loans was published unchanged at 2.9% which was expected to increase to 3.0%. Moreover, today EUR German GfK Consumer Climate report is going to be published which is expected to have slight decrease to 10.7 from the previous figure of 10.8. On the AUD side, recently HIA New Home Sales report showed a decrease in a deficit of -0.7% which previously was at -2.1%. The positive economic report did not quite helped AUD to gain some momentum over EUR but tomorrow AUD Private Sector Credit report is going to be published which is expected to be unchanged at 0.3% whereas positive result in this report is expected to help AUD to regain its grounds against EUR for a certain period. As of the current scenario, AUD is expected to gain some momentum leading to certain retracement in the coming days before EUR continues its bullish pressure in the future.
Now let us look at the technical view. The price is currently quite bearish after the impulsive daily bullish candle formed recently. The price is currently expected to retest 1.5980-1.60 price area before any bullish intervention in the process. As the price remains above 1.59 price area, the bullish bias is expected to continue further.
