EUR/AUD: Weekly Engulfing Bar Pullback!

10 feb

The recent performance of the EUR/AUD exchange rate shows a fluctuating trend, with a slight recovery, closing at approximately 1.6450 in the first week of February. In the preceding days, the rate experienced several declines, with a significant drop. These fluctuations reflect the economic dynamics of both the Eurozone and Australia. In the Eurozone, inflation unexpectedly rose to 2.5% in January, exceeding the European Central Bank’s 2% target for the third consecutive month. Despite this, the ECB plans to continue cutting interest rates, expecting inflation to reach its 2% target over the year. Meanwhile, the Eurozone economy showed no growth in the last quarter of 2024, with contractions in Germany and France and stagnation in Italy. In Australia, the leading economic indicators index increased by 0.2% in October 2024, suggesting a slight economic recovery. However, Australian Treasurer Jim Chalmers confirmed a worsening fiscal deficit, projected to rise by AUD 21.8 billion over the next four years, mainly due to unavoidable expenditures. These economic developments impact the EUR/AUD exchange rate, with the Euro benefiting from a more accommodative monetary policy while Australia faces fiscal challenges. Despite the recent upward movement, the negative trends from previous sessions and technical analysis suggest caution is warranted when assessing the short-term trajectory of the EUR/AUD exchange rate.

18 feb

Trade attivo

Good reaction of the price inside the golden zone. Waiting for the liquidity grab below the February 11 low.