After breaking below 1.60 price area with a daily close, currently EUR/AUD price is retracing towards the area to retest it as a resistance to continue its bearish pressure in the coming days. The pair has been quite volatility lately whereas AUD has been the dominant currency during this corrective price structure.
AUD has been struggling with the recent economic reports published this week which has lead the bulls to push the price higher recently. The Australian Retail Sales report was published with a decrease to 0.0% from the previous value of 0.6% which was expected to be at 0.2%. The worse economic report helped EUR to gain momentum against AUD which is expected to remain constant for certain period only.
On the EUR side, today the French Industrial Production report was published with a decrease to -0.4% from the previous value of 1.1% which was expected to be at 0.4%. The Italian Retail Sales report was also published with a decrease to -0.2% from the previous value of 0.7% which was expected to be at 0.1%.
As of the current scenario, EUR has been quite impulsive with the bullish momentum against AUD which is expected to come to an end very soon while AUD is going to take over with its gains in the coming days. To sum up, AUD is expected to have an upper hand over EUR in the coming days.
Now let us look at the technical view. The price is currently residing below the 1.60 resistance with confluence to the dynamic level of 20 EMA as well which is expected to push the price much lower towards 1.5750 support area in the coming days. The current price action is quite volatile and expected to push lower as of the market structure formed recently. As the price remains below 1.60 with a daily close, further bearish pressure is expected in this pair.
