The price of EURAUD is finding support at the 1.5300 handle, could this offer opportunities for traders looking to go long?
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The ECB will look to hike interest rates in December with many members calling for the European central bank to hike aggressively. The inflation rate in Europe has risen to 10.9% and unlike the US we haven’t seen it slow down yet. This should be the incentive for the ECB to hike rates by 50 bps or more in the December meeting. The RBA has already begun to slow the pace of tightening which could go against the AUD if put against the EURO and ECB.
The price of EURAUD is finding support above the 1.5300 handle. If the price remains supported by buyers we could see a move which pushes the price to the next resistance level around 1.5675 to 1.5800. If this was to be achieved we would expect to see the market form a reversal pattern on a lower time frame such as the 4hr. If the 4hr begins to form a reversal pattern like a double bottom or a change of trend we could look for a long idea to the key resistance level.
Did you see our NZDUSD Analysis? You can see it here.
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