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EURAUD Forecast – December-17-2023

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FxNews – In today’s comprehensive EURAUD forecast, we will first scrutinize the current economic conditions in Australia. Following that, we will meticulously delve into the details of the technical analysis pertaining to the EURAUD pair.

S&P/ASX 200 Hits Peak; Mining, Energy Soar

Bloomberg – On Friday, the S&P/ASX 200 Index experienced a significant rise, reaching its highest point since early August with a 0.88% increase, closing at 7,443. This surge was primarily driven by the robust performance of the mining and energy sectors, fueled by stronger commodity prices. Australian stocks echoed the upward trend seen in Wall Street, following the Federal Reserve’s indication of potential interest rate reductions in 2024.

In the domestic sphere, the Australian labor market showed signs of cooling, leading to speculation that the Reserve Bank of Australia might halt its tightening measures and consider future rate cuts. Leading the charge in the mining and energy sectors were prominent companies like BHP Group, Rio Tinto, Fortescue Metals, Pilbara Minerals, Woodside Energy, and Santos, with notable gains. Additionally, major players in finance, technology, and consumer sectors also saw advances.

EURAUD Forecast: Bearish Trend Continues

FxNews – The EURAUD currency pair recently closed below its late September low, specifically at the 1.6321 mark. Currently, the RSI (Relative Strength Index) indicator remains below the 50 level, indicating potential continued weakness. Additionally, the EURAUD is trading within a bearish channel. Analysis of the daily chart and technical indicators suggest a likely continuation of this bearish trend. The median line of the channel is acting as a key resistance point. With the EURAUD price lingering below this resistance, there’s an expectation that the selling pressure might push the price down to the lower boundary of the channel.

EURAUD Forecast - December-17-2023

EURAUD Forecast – Daily Chart

However, it’s important to consider the alternative scenario. If the bulls manage to close the price above the median line and stabilize it there, it would challenge the current bearish outlook. In such a case, the EURAUD price could potentially test the upper band of the flag pattern. This resistance area is also reinforced by the Ichimoku cloud, adding an extra layer of technical significance.

Overall, while the current trend leans towards bearishness, traders should be mindful of the potential for a shift in momentum, especially if the price breaks above the median line.

  • 17 December 2023
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