Bearish Run of Australian Dollar (AUD) Starts with Economic Data from China
Weak data arrived from China over the weekend, disappointing expectations as the year-on-year exports in particular reported a decrease of unanticipated severity, contracting by -8.3%. The continued slowdown of the Chinese economy is still weighing on the commodity currencies, with the ‘Aussie’ (AUD) rapidly weakening in response to losing further ground against rivals. Consequently, the EUR/AUD pairing hit a peak of 1.4893 early in the day.
Major Support area in EUR/AUD remains on 1.4600 levels: break of this level will indicate reversal and turn the trend to bearish.
Support area from the last run 1.48 area stay in 1.5050-1.5130
Further rally is in favor, we could see the pattern in the chart:
The Shark pattern - Above 1.53 will lead the target to 1.55 area, break up there will imply larger up trend resumption and will target a test on 1.57-1.59-1.60 levels high next. However, break of 1.4600 will indicate near term reversal and turn outlook bearish. 