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EURAUD: Inside day in an upward trajectory

In the Eurozone, the Greek issues still weigh as the country is said to run out of cash this week on the 9th of April, when it will also have to face a payment of 450M euros to the IMF. The fall in commodity prices hit the Aussie.

The Reserve Bank of Australia (RBA) maintained its cash rate despite calls for another rate cut. However, implied further easing measures may be introduced in the next policy meeting this week. The RBA preferred to assess the impact of February’s cut before lowering rates once again. Australian cash rate is expected to remain at 2.25%.

EURAUD initially fell on Friday’s session but found enough buying pressure on the 50-day moving average to turn around and closed in the green near the high of the day, also creating an inside day. The pair is in a recovery phase and is getting ready for another potential phase change, from recovery to accumulation phase. Stochastic in showing a overbought market but even with the pair well into overbought territory, we should not fight the strong upward trend.

Expecting an upward move to a daily resistance at 1.4668 on a break above Friday’s high at 1.4388 (scenario 1) or a break below Friday’s low could trigger a sell-off to a key level at 1.4066.