Weekly Technical Outlook: EUR/AUD; Market Forecasts for November 2nd – November 6th

• Resistance level   1.5720, 1.5875, 1.6000
• Pivot Level  1.5299
• Support Level  1.5137

Technical Analysis

EUR/AUD looking for consolidation pattern from 1.5137 levels and is still in progress with strong support holding the levels. Price action produced strong bullish back-to-back two bar reversal candle indicating shift in momentum to upside bias. The rebound on trend line pair looks for corrective upward bias. The price action confirming the bullish movement pair medium term rally is still in progress. Sustained trading above 1.5299 will confirm strong long term momentum. This will remain favoured as long as the support holds and would pave the way to reach level at 1.5720 breaks here can expect levels of 1.5875 and later to 1.6000. Meanwhile, we’re uncertain on the time need to complete the consolidation and the strength of the rebound. But in any case, break of 1.5137 levels will dampen our bullish view on the pair and should continue with the current momentum to downside and make new lower low.

Outlook remains bullish for week.

Economic

• Markit Manufacturing PMI
• ECB President Draghi’s Speech, Non-Monetary Policy’s ECB Meeting
• European Commission Release Economic Growth Forecasts, Economic Bulletin
• AIG Performance of MFG Index, TD securities Inflation
• RBA Rate Statement, RBA Interest Rate Decision, Imports and Exports with Trade Balance
• RBA’s Governor Glenn Stevens Speech, Deputy Governor Lowe Speech

 

Area of Interest

 

• Strong support at 1.5137 area and rebound on the trend line.
• Back to Back two bar reversal with bullish movement strongly on the support area.
• Price action closed above support level and rebound on trend line indicating shift in momentum.
• At Flip Area on Daily time frame supporting levels.

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