EURO - Aussie Dollar Continue to Trade Below 21 EMA With a Continuous Downtrend

EURAUD Chart Analysis / EURAUD Price Prediction

EUR/AUD downtrend continues after a big rally in the month of March 2020. The EUR/AUD pair is trading continuously below it's 21 EMA but unable to break below price action level. A breakdown below 1.6030 level may take it to the next support level at 1.5836.

This continued fall could be attributed to the fear of 'Second Wave' of COVID-19. However the unprecedented upward rally in EUR/AUD had to be associated with the technical retracement and this can be clearly seen from the current chart pattern of this pair. 

The analysts were waiting for the decision of the Bank of Australia meeting held on 15th June 2020. The board reaffirmed the elements of the policy package announced on 19 MArch 2020, mainly;

- a target for the cash rate of 0.25 per cent

- a target of 0.25 per cent for the yield on 3-year Australian Government bonds

- the Term Funding Facility to support credit to businesses, particularly small and medium-sized businesses

- an interest rate of 10 basis points on Exchange Settlement balances held by financial institutions at the bank

With these steady outcomes we can expect the AUD to appreciate against EUR. 
EUR/AUD pair may see further fall till 1.6030 which is it's immediate support. However, any upward move above 1.6380 may change the trend.   

By Sandesh Nandode, Forex and Crypto Analyst- Dubai



  
Location: Dubai - United Arab Emirates

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