Forex Trading Technical Analysis (USD/CAD) – October 18, 2019
The Euro (EUR) slips down against the Australian Dollar (AUD) on Friday, decreasing the price to less than 1.6300. The price decreases amid industrial production release. The technical bias might remain bullish because the price printed a lower high in the recent downside move.
EUR/AUD Technical Analysis
As of this writing, the pair is being traded around 1.6287, a support can be seen around 1.6233, the 61.8% Fib level support ahead of 1.6000, the psychological number and then comes 1.5913, the trend line support which may prevent the price from falling below the said level as shown in the graph below.
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Coming towards the upside, the price may come across a resistance level around 6418, an immediate trend line resistance ahead of 6574, the 23.6% fib level resistance and the comes 1.6786, the high of August 07, 2019 which is likely to resist the price from increasing above this level as shown in the graph above. The technical bias may remain bullish as long as 1.6233, the key horizontal support remains intact.
European Industrial Production Release
Eurostat has recently released stats with respect to Industrial Production showing the volume of production of Industries such as factories and manufacturing. Up trend is regarded as inflationary which may anticipate interest rates to rise. Usually, if high industrial production growth comes out, this may generate a positive sentiment (or bullish) for the EUR, while low industrial production is seen as a negative sentiment (or bearish).
Considering the price behavior of the pair over the past few days, buying the pair around current levels may be a good decision in the short to medium term. However, opening up long positions might also bring fruitful results.