Euraud Climbs Higher

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Euraud Climbs Higher

Eur/Aud Climbs Higher With Eyes On 1.6300

It appears that the shared currency (EUR) is now in recovery against the AUD on Wednesday. A quick look at the EUR/AUD shows that it has already gained 0.18%, as everyone is now awaiting the release of Australia's job data.

The EUR/AUD is seen trading near 1.6284 as the pair has gained some pips from its low near 1.6238. On the way up, the nearest resistance is 1.6300, without any doubt. As for the support, it is seen as near 1.6210 - 1.6200, which could stop any downside in the EUR/AUD.

Eur/Aud Trades With Neutral-Bearish Bias

According to estimates, around 25K jobs will be added to the Australian economy during October. September's reading was 64100 new jobs, which means this month's reading will be lower. As for the unemployment rate, it will remain steady at nearly 4.1%.

better jobs report from Australia will be helpful for the AUD in general. But, a weaker report may force the RBA to lower the rates a little bit to provide support to the labor market.

For now, the bias for the EUR/AUD is neutral-bearish as it is still below the 50, 100, and 200 SMA on the daily chart. These SMA lines have also created a confluence zone, which can be seen near 1.6315 - 1.6486.

Furthermore, a decline below 1.6238 means the next stop for the EUR/AUD will be near 1.6200. A break of this level will send the EUR/AUD tumbling down to 1.6161, which is also a key support. Below all of these levels lies the 1.6003 which is the YTD low for the EUR/AUD.

On the flip side, the 50 SMA is the first hurdle for EUR buyers located at 1.6315. If the buyers can clear it, the next stop will be 1.6356, where the 100 SMA is located.

After that, the 200 SMA is located near 1.6386 which is also a key level for the EUR/AUD traders. Beyond that lies the round figure of 1.6400, but it appears to be out of reach for now.

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