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23 Sep 2013
EUR/AUD celebrates Merkel’s win; targets 1.45
FXstreet.com (Chicago) - EUR/AUD opened strong on Merkel’s win after the German federal election this past weekend. The pair welcomed the week with a runaway gap and short-lived retracement to 1.4390 zone.
Historic vote count
Merkel is, for the third time, the chancellor of Germany after “super” electoral participation not seen since Kohl’s reunification after the Cold War in 1990. Favoring the euro, the election demonstrates a strong support to pro-euro policies amid a crisis that affects and questions the effectiveness of the union. The possibility of a coalition with the Social Democrats could fuel the pair higher as the SPD is an advocate of the Eurozone integration. Ahead of Chinese manufacturing data, the Aussie continues weakening.
EUR/AUD Technical Levels
A secondary trend pointing up may be indicative of the beginning of a new upward trend on potential reversal formation. The pair flows around 3-week lows but approaches immediate resistances. Offered at 1.4415, it oscillates between supports aligned at 1.4344 (September 4th lows), 1.4292 (September 6th lows) followed by 1.4232 (September 13th lows) and resistances set at 1.4417 (September 5th highs), 1.4465 (August 20th lows) ahead of 1.4536 (August 13th lows). According to the FXstreet.com trend index, the pair is strongly bullish on one-hour timeframe analysis.
Historic vote count
Merkel is, for the third time, the chancellor of Germany after “super” electoral participation not seen since Kohl’s reunification after the Cold War in 1990. Favoring the euro, the election demonstrates a strong support to pro-euro policies amid a crisis that affects and questions the effectiveness of the union. The possibility of a coalition with the Social Democrats could fuel the pair higher as the SPD is an advocate of the Eurozone integration. Ahead of Chinese manufacturing data, the Aussie continues weakening.
EUR/AUD Technical Levels
A secondary trend pointing up may be indicative of the beginning of a new upward trend on potential reversal formation. The pair flows around 3-week lows but approaches immediate resistances. Offered at 1.4415, it oscillates between supports aligned at 1.4344 (September 4th lows), 1.4292 (September 6th lows) followed by 1.4232 (September 13th lows) and resistances set at 1.4417 (September 5th highs), 1.4465 (August 20th lows) ahead of 1.4536 (August 13th lows). According to the FXstreet.com trend index, the pair is strongly bullish on one-hour timeframe analysis.