EUR/AUD forecast for March 24, 2021
Looking at the chart on the weekly time frame, we see that the EUR/AUD pair is moving in one large ascending channel and that the EUR/AUD pair is currently bouncing off the bottom line of the channel from 1.53000 to the current 1.55250. It is an aggravating circumstance that the EUR/AUD pair is below all moving averages. For now, they are putting pressure on the EUR/AUD pair directing it towards lower levels but currently unsuccessfully because we have found support on the bottom line. The pair is between 61.8% and 78.6% level by setting the Fibonacci level with the probability of testing the 61.8% Fibonacci level again.
On the daily time frame, we see that the EUR/AUD pair, after finding support and a smaller pullback to 1.56000, now stopped and started to lose power consolidating now to 1.55000-1.55300. Moving averages of MA20 and EMA20 are on the bullish side for now with the current MA50 titration. If the EUR/AUD pair manages to consolidate, we look towards the previous high at 1.56800, looking towards the 1.58000-1.60000 zone.
On the four-hour time frame, we see that the EUR/AUD pair, after the break above MA200 and EMA200 pair, makes a pullback making a potential retest on the first two moving averages from where we can again move up to higher levels on the chart. If we are looking at bearish, we need a break below, and then we go again to test the previous low and zone around 1.52600. We can also draw two trend lines from the bottom and top that are our resistance, and if we want to see a better direction of the trend, we will wait for a break above or below these two lines.
From the economic news for the EUR/AUD currency pair, we can single out the following: The manufacturing sector in Australia continued to expand at a slightly faster pace, according to a recent Markit Economics survey on Wednesday with a PMI rating in production from 57.0. That’s up from 56.9 in February and moving further above the 50-point burst or crash line. The upswing was supported by faster growth in factory orders and employment, while output growth has eased slightly since February. Manufacturers of goods registered the strongest growth in input costs in the history of the survey.
The eurozone’s private sector returned to growth in March, supported by a record expansion in production. As global demand continued to revive from the pandemic, the results of a survey by IHS Markit showed on Wednesday. The composite production index climbed to an eight-month high of 52.5 in March from 48.8 in February. The reading was predicted to rise to 49.1. The result exceeded the neutral level of 50.0 for the first time since September last year, indicating expansion in the private sector.
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