EUR/AUD opening the week in a bearish continuation
Topic: EUR/AUD opening the week in a bearish continuation
FXStreet (Guatemala) - EUR/AUD is trading at 1.4252, down -0.29% on the day, having posted a daily high at 1.4277 and low at 1.4240.
EUR/AUD was a big loser on the euro sell off at the end of last week, dropping over 220 points and opens the week with a bearish gap through 1.43 to the downside and onto a major support line guarding September and 2014 lows.
Draghi was one of the catalyst for the losses of the cross at the end of last week when he drew markets into speculate that more ECB action is imminent with his dovish commentary while China previously came into rescue the Aussie of its lows through the key 0.86 handle with a surprise rate cut, suspected to help spur domestic growth, but as analyst Sean Callow at Westpac Banking Corporation ABN noted, “As always there was little commentary to explain the move, with the PBoC’s English site not even mentioning it yet and the Mandarin version saying the change would ease conditions for SMEs, not discussing housing”. Key support on further downside can be eyed at 1.4175 (Daily Classic S1) and 1.4120 ahead of 1.4050 Sep 2014 lows of 1.3802.