The events of recent days, namely, the panic that developed in the stock market led to a sharp increase in demand for the euro. Such dynamics is caused by the fact that at this stage of the common European currency acquires the status of asylum. Earlier, amid loose monetary policy of the European Central Bank, investors are actively credited in euros and used it to buy higher-yielding assets. Now comes the return of risky assets in currency funding. As for the Australian dollar, it looks vulnerable amid signs of cooling of the Chinese economy, with which Australia has strong international relations. It is this contrast and allows you to wait for the further growth of cross EUR/AUD.
In the area of 1.5960 level the pair has formed a support. In the last two days were attempted to overcome and both failed. Thus, when approaching this mark can be activated the “bulls“, pushing the pair to the upper boundary of the established range.
EUR/AUD – buy eur/aud – Entry price: 1,5960. Goal: 1,6235. Stop loss: 1,5779.
Warning: Profitability in the past does not mean profitability in the future. Any projections are for information only and does not guarantee a result.