EUR/AUD has been quite bearish today after the recent impulsive bullish momentum breaking above 1.55. AUD has been quite positive with the recent economic reports which helped the currency to gain impulsive momentum over EUR having mixed economic reports. Today AUD AIG Service Index report was published with an increase to 54.9 from the previous figure of 52.0, MI Inflation Gauge increased to 0.3% from the previous value of 0.1% and ANZ Job Advertisement report showed a significant increase to 6.2% from the previous negative value of -2.7%. The increase in value for the economic reports helped AUD to gain momentum from the beginning of the day which is expected to continue further in the coming days of the week whereas EUR has been struggling with the mixed economic reports. Today EUR Spanish Services PMI report was published with an increase to 56.9 from the previous figure of 54.6 which was expected to be at 55.2, Italian Services PMI report was published with an increase to 57.7 from the previous figure of 55.4 which was expected to be at 56.1, French Final Services PMI was slightly decreased to 59.2 which was expected to be unchanged at 59.3, German Final Services PMI was slightly increased to 57.3 which was expected to be unchanged at 57.0 and EUR Final Services PMI increased to 58.0 which was expected to be unchanged at 57.6. Moreover, today EUR Sentix Investor Confidence report was published with decrease to 31.9 from the previous figure of 32.9 which was expected to increase to 33.2, Retail Sales report was published as expected at -1.1% which decreased from the previous positive value of 2.0% and ECB President Draghi spoke quite neutral about the upcoming policies to be implemented which are expected to have no recent effect on the market. To sum up, EUR has been struggling to make an impact with the indecisive mixed economic reports where AUD was significant with the positive economic reports which are expected to help AUD to recover its grounds against EUR in the coming days.
Now let us look at the technical view. The price has bounced off the 1.5750 resistance area today with a daily candle which is expected to push the price much lower in the coming days with target towards 1.55. The recent impulsive bullish pressure was quite really hard for the market to digest with certain cash flow whereas certain retracement and counter move is quite obvious to form. As the price remains below 1.5750 the bearish pressure is expected to continue further.