EURAUD Under Selling Pressure Despite Mixed AU Job Reports

Fundamentals: EURAUD remains under selling pressure despite mixed Mixed Australian Macroeconomic data and latest Jobs Report on Thursday. Two key issues will determine the medium-term direction of the pair.

ECB Monetary Policy Decision: The most important event of the week is likely to be the European Central Bank’s (ECB) July policy decision, which will take place on Thursday afternoon.  A lack of particularly impressive Eurozone data last week, combined with continued signs of weakness in Germany’s economy, has kept Euro investors anxious ahead of next week’s European Central Bank (ECB) policy decision. Speculation on how dovish the European Central Bank could become in response to prolonged weakness in the Eurozone economic outlook has been mixed. With investors unsure about how dovish the ECB’s tone will be next week, markets are hesitant to move too much on the Euro.

Investors will be hesitant to buy the Australian Dollar too much due to concerns that the Reserve Bank of Australia (RBA) could continue to cut Australian interest rates lower

EURAUD pair is still trading in a bull market. However, on the weekly chart, the pair ended the week below EMA50 1.59200 in the lower channel of Bollinger Bands.

Daily Chart: Bearish.

The pair is below SMA100 and SMA200. It is below the Ichimoku Cloud and signalling bearish continuation.

Head And Shoulders Pattern has been completed. The first structural target of the pattern is 1.58690. The ultimate target of the pattern is 1.56350.

RSI has downside rooms.

Major Trend Reversal: Daily Closings below 1.56250. ( Breakout of the yellow ascending trendline )

 

H4 Chart: Bearish

RSI has downside rooms.

The first target of the Head and Shoulders pattern is likely near term. Bullish Cypher and MM 4/8 Confluence at the TP1 of SHS.

Intraday Key Levels:
Upside: 1.59650 1.59900 1.60250
Downside: 1.58900 1.58680  1.58400

Chart Patterns: Forming Bullish Cypher 1.58500.

Our Comments: ECB Meeting will create volatility. A daily closing below 1.58000 would send the pair 1.56250 medium terms. Pullbacks can be used as selling opportunities near term.

Intraday Trade Opportunities:

Bullish Cypher: Long Entry Zone 1.58600 - 1.58420

Short the potential pullbacks towards 1.59910