EUR/AUD has been quite volatile and corrective at the edge of 1.60 support area from where the price is more likely to head downwards in the coming days. Both currencies in the pair are ffected by downbeat economic reports. As a result, the pair is trading with higher volatility in the market amid indecisive sentiment.
Recently the ECB wrapped up its 3 trillion dollar-based bond purchases in December, but ECB President Mario Draghi warns about growing risks and a slowdown in the eurozone's economic growth. Though the ECB intends to maintain the interest rate at a record low at least till summer 2019, the key interest rate can be adjusted to the situation if required. Currently the ECB is trying to tackle a slowdown, which if solved may encourage EUR to gain momentum again in the future. Today Italian Industrial Production report is going to be published which is expected to decrease to -0.3% from the previous value of 0.1%.
On the other hand, AUD has been weighed down by the recent economic reports. However, a better-than-expected retail sales report today maintains bearish momentum in this pair. Today Australia's Retail Sales report was published with an increase to 0.4% which was expected to be unchanged at 0.3%. The positive economic data enabled AUD to breakout of the indecision which might result in further consistent bearish momentum in the coming days.
Meanwhile, the better-than-expected report from Australia managed to assert bearish momentum. On the other hand, EUR is still struggling amid indecision and downbeat economic reports. The upcoming economic reports from the eurozone are expected to reveal weak data. At the same time, AUD seems optimistic, thus winning favor with investors.
Now let us look at the technical view. The price is currently pushing strongly lower while residing at the edge of 1.60 area. Amid bearish pressure, the price is being intersected by the dynamic level of 20 EMA. This indicates that the price is going to sink lower towards 1.5850 and later towards 1.5600 area. As the price remains below 1.6350 area, the bearish pressure is expected to continue.
SUPPORT: 1.5600, 1.5850, 1.60
RESISTANCE: 1.6350
BIAS: BEARISH
MOMENTUM: VOLATILE