EUR/AUD Continues Its Fall to New Lows

The EUR/AUD has fallen sharply today as the AUD benefits from the stronger US data.The thought is if the global economy is going to get better, it will help the Australian economy the most. The EU meanwhile still has their problems to sort through and with austerity cuts likely to dominate, the may need help from a lower currency (that is the theory or story at least).   The fall lower has so far had little in the way of a correction. The shorter term chart above, has flattened out, but with lower lows and lower highs still in place.  A move above 1.2189 and thens 1.2208 is needed to get shorts concerned. From there, look for resistance at the 1.2222 level (38.2% of the move down today).

With the market making new lows today, where might there be a floor. Looking at the weekly chart, the bias remains decidely bearish. The price has a Fibonacci extension that measures out to the 1.20000 level. This would be a nice round number to shoot for. Below that level the 1.1861 is the bottom trendline support target.



USD/SGD finds daily support around 1.2400 area.



USD/HKD consolidating after breaking through support line



USD/HKD consolidating after breaking through support line.