I am a Bear on the Euro.

The EUrozone has seen improvements in the labour market conditions. Core inflation has remained low, while headline inflation jas increased. This would explain the bullish move of the Euro in the market currently.

However it is important to note that core CPI jas not increased to warrant a change in monetary policy. The ECB is still monitoring Core inflation. The ECB’s APP(Asset Purchase Program) is lowered to accommodate CPI and not create hyper inflation for the Eurozone.the ECB is still in an expansionary policy and has not changed yet.

The RBA indicated growth in commodity prices, housing,and lending to households. This indicates a growing economy and supports bullish bias on the Aud.

EURAUD Daily

Price is currently at support at MPP wrh 5/8 cross and the 21 below the 55. Bears might look to sell at 1.4000 which is also WPP.

EURAUD H4

Price came off of WM1 which pivot theory states it will go to the WPP. 21 is below the 55. WPP/1.40 coincides with the 61.8 fib zone. Bears will look to sell at WPP

EURAUD H1

Price is approaching DR2. Steong support at DM2. Bears might look to sell at DR2/WPP.

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