Nick Nasad
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EUR/AUD: At a Key Precipice

The EUR/AUD is at an important precipice as it tests the 1.5050 level, a low it last reached in mid-January and from which it managed a nice little rally.

  • This time around the macro situation has changed somewhat as the RBA has shifted to a "neutral" stance while the ECB is coming under pressure to do more - whether a rate cut (which it didnt do today) or the announcement of another LTRO or even some form of QE.
  • In any case, while I had been bullish on this pair not too long ago and was looking at the opportunity of it dipping and testing important support, this time around, my bias leans towards the pair breaking down through support on its way towards 1.48.
  • So, the level we are watching is clear. Will the pair bounce up from here, or fall through?