EUR/AUD is likely to accelerate further above the 1.5100 handle, and USD/CAD is now approaching a major support area.
EUR/AUD Forecast – Euro To Continue Higher
- The Euro is in a solid uptrend from the 1.4800 low against the Aussie Dollar.
- There was a break above a bearish trend line at 1.4920 on the hourly chart of the EUR/AUD pair.
- Today, the German Manufacturing Purchasing Managers Index (PMI) (Prelim) for Sep 2017 was released by the Markit economics.
- The forecast was 59.0, but there was a rise from the last reading of 59.3 to 60.6 in the PMI.
The Euro after a sharp decline from the 1.5030 level against the Aussie dollar found support near 1.4800. The EUR/AUD pair formed a base at 1.4800 and started an upside move.
The pair traded above the 1.4950 resistance followed by a close above 1.5000 to move back into the bullish zone. It even climbed above the 1.5050 level and the 100 hourly simple moving average to trade as high as 1.5107.
It corrected from 1.5107 towards the 50% Fib retracement level of the last wave from the 1.5007 low to 1.5107 high. The pair is now resuming its uptrend and following a bullish trend line with support at 1.5070.
Overall, it seems like the pair would soon break 1.5100-10 for further gains in the near term.
German Manufacturing PMI
Today in the Euro Zone, the German Manufacturing Purchasing Managers Index (PMI) (Prelim) for Sep 2017 was released by the Markit economics. The forecast was slated for a decline from the last reading of 59.3 to 59.0.
However, the actual result was above the forecast, as there was a rise from the last reading of 59.3 to 60.6 in the PMI. The German Services PMI was slated for a rise from the last reading of 53.5 to 53.8.
Again, the result was positive, as there was a rise from 53.5 to 55.6 in the German Services PMI.
Overall, the outcome was positive, which might continue to help EUR/AUD in gaining bids above 1.5070 in the short term.
USD/CAD Forecast – US Dollar Approaching Support
- The US Dollar after trading as high as 1.2389 against the Canadian Dollar started a downside correction.
- There are two bullish trend lines forming with support at 1.2280 and 1.2240 on the hourly chart of the USD/CAD pair.
- Today, the US Manufacturing Purchasing Managers Index (PMI) (Prelim) for Sep 2017 will be released by the Markit economics, and forecasted to rise from 52.8 to 53.0.
The US Dollar made a sharp swing move from the 1.2191 low against the Canadian Dollar found. The USD/CAD pair traded as high as 1.2389 before starting a correction.
The pair is correcting lower and already traded below the 50% Fib retracement level of the last wave from the 1.2191 low to 1.2389 high.
On the downside, the 100 hourly simple moving average and two bullish trend lines with support at 1.2280 and 1.2240 on the hourly chart are acting as a barrier for more declines.
As long as the pair stays above the 1.2240 support, it could bounce back above the 1.2320 level in the near term.
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