Weekly Pin Bar Keeps EURAUD Under Strong Selling Pressure

The Euro (EUR) is slightly changed against the Australian Dollar (AUD) so far this week with a price hovering around 1.6000. The technical bias remains bullish because of a higher high on major timeframes. The weekly bearish pin bar which emerged lately is keeping the pair under selling pressure.

Technical Analysis

As of this writing, the pair is being traded around 1.6002 with an immediate resistance being noted at 1.6400 which is the confluence resistance zone because of 50% fib level, psychological number as well as horizontal resistance as demonstrated in the following chart.

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As mentioned before, the pair left a huge bearish pin bar on the weekly chart with an unprecedented retracement of more than 1000 pips as demonstrated in the following weekly chart.

This pin bar is expected to keep the pair under selling pressure throughout the course of ongoing month. A break below 1.5559, the low of the bearish pin bar, will confirm more dips below the 1.5267 zone.

Australia Employment News

Australian employers added jobs in August, indicating record-low interest rates, a falling currency and weak wage growth is encouraging hiring. Employment rose by 17,400 from July; economists forecast a 5,000 increase

The jobless rate dropped to 6.2 percent; matching economists’ estimates while full-time jobs rose 11,500; part-time employment increased 5,900 and participation rate, a measure of the labor force in proportion to the population, fell to 65 percent from 65.1 percent; matching predictions.

Eurozone’s inflation News 

On Wednesday, September 30th, the EuroStat will release the Eurozone’s inflation report for the month of September. It will be a very crucial release as the European Central Bank (ECB) heavily rely on inflation readings for making important monetary policy decisions.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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