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6 Jun 2014
EUR/AUD comes back to life, bears still dominant force
FXStreet (Bali) - EUR/AUD is trading just below 1.4650 in an Asian session that is expected to develop quietly ahead of the US NFP.
During Thursday, the pair traded initially sharply lower as a response to ECB's Draghi easing measures, however, a market caught EUR short was overwhelmed by the comeback of buyers, who forced a squeeze which sends some bullish signals for the weeks ahead.
Technically, the daily chart still points at bears being the dominant force, however, the volatile swings seen suggests that decline will continue to be faced by consistent buying interest. While further intraday recoveries are a possibility, it will take a break of 1.49 first and 1.50/1.5050 next for bulls to truly dominate price action again, a scenario not foreseen for now given the diverging policies between the RBA and ECB.
During Thursday, the pair traded initially sharply lower as a response to ECB's Draghi easing measures, however, a market caught EUR short was overwhelmed by the comeback of buyers, who forced a squeeze which sends some bullish signals for the weeks ahead.
Technically, the daily chart still points at bears being the dominant force, however, the volatile swings seen suggests that decline will continue to be faced by consistent buying interest. While further intraday recoveries are a possibility, it will take a break of 1.49 first and 1.50/1.5050 next for bulls to truly dominate price action again, a scenario not foreseen for now given the diverging policies between the RBA and ECB.