The EUR/AUD is set to depreciate further if the recent support area can be broken. Yesterday’s latest GDP figures in Australia revealed that the nation’s economy contracted by the most on record in the second quarter, with the recovery from the country’s first recession in almost 30 years. This sent the EUR/AUD higher but currently, we are looking at a massive reversal.
As the EUR faces more headwinds we’d like to sell EUR/AUD at 1.6140 with SL at 1.6570 and TP at 1.5725. The ECB also seems to think that the Euro has appreciated too much recently so the AUD could gain new momentum leading to a breakout of the pair. With further momentum in the market soon new lows could be established.