By: DailyForex.com

The EUR/AUD pair is in one that a lot of you will trade, which is a mistake quite frankly as they are both major currencies. Everybody knows of the Euro has been selling off drastically lately, so it’s not a surprise to see it falling against the Australian dollar as well. This is a sign of just how weak the Euro has become, as the Australian dollar hasn’t exactly been a stellar performer either.

With the gold markets been fairly stagnant, as well as a lot of the industrial metals, the fact that the Australian dollar can continue to pound the Euro suggests to me that the move has more to do with issues in the European Union than around Australia itself. With that, all we can do is simply look at the longer-term trend and recognize that although we did have a nice bounce during the session on Wednesday, it appears that the 1.44 region is the beginning of significant resistance, probably extending all the way to the 1.46 level.

Pay attention to nonfarm payroll.

I know that when you think of the US nonfarm payroll numbers, the idea of it having an effect on the value of the Euro against the Australian dollar isn’t exactly something that comes to mind right away. The reason I think it will have an effect this time though is that the Euro itself is in focus. If the EUR/USD pair falls, you can pretty much count on this one doing the same thing at this point in time.

It is also possible that the gold markets go higher, and as a result the Australian dollar should have more demand placed upon it. Remember, Australia is one of the largest exporters of gold in the world, and that almost always has a longer-term correlation with the value of the Aussie dollar. With today been the day before nonfarm payroll, it wouldn’t surprise me at all if we drift a little bit higher, but not have enough momentum to break out to the upside. A resistant candle in this region would be an excellent selling opportunity.

EURAUD 73114

Related Articles
  1. Credit & Loans

    Guidelines for FHA Reverse Mortgages

    FHA guidelines protect borrowers from major mistakes, prevent lenders from taking advantage of borrowers and encourage lenders to offer reverse mortgages.
  2. Taxes

    What IRS Form 1023 Is Used For

    To be treated as a tax-exempt organization, start by filling out this form.
  3. Personal Finance

    Does It Make Sense to Go to College in Europe?

    If you're deciding whether to get a degree abroad, first do your research and talk to alumni who have completed the same program.
  4. Taxes

    Late with Your Taxes? Grab IRS Form 4868

    Fill out this form to get a few more months to file your tax return. But remember, April 15 is still the payment due date if you owe taxes.
  5. Markets

    The Origins of the Chinese Stock Market Collapse

    Learn about some of the reasons for the volatility in the Chinese stock market, including expansion of margin lending and governmental support.
  6. Active Trading Fundamentals

    The Companies of Peter Theil's Founders Fund

    Learn about the major public companies that Peter Thiel has invested in and companies that are on the verge of going public at multibillion-dollar valuations.
  7. Active Trading Fundamentals

    How Hedge Funds Front-Run Index Funds to Profit

    Understand what front running is, and learn how hedge funds use this investing strategy to profit from the anticipated stock buys of index funds.
  8. Savings

    Traveling Abroad? Get the Best Exchange Rates

    When you exchange currencies, here’s how to make sure you are getting top value on the trade.
  9. Entrepreneurship

    How Does Hinge Work and Make Money?

    Learn about Hinge's business model and its competition in the dating app field. Find out in which cities Hinge currently offers its services.
  10. Mutual Funds & ETFs

    Top 5 Chinese Mutual Funds

    Learn about some of the most popular and best performing mutual funds that offer investors exposure to the important emerging market economy of China.
RELATED TERMS
  1. Yield To Maturity (YTM)

    The total return anticipated on a bond if the bond is held until ...
  2. Gross Profit

    A company's total revenue (equivalent to total sales) minus the ...
  3. Interest Coverage Ratio

    A debt ratio and profitability ratio used to determine how easily ...
  4. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
  5. Receivables Turnover Ratio

    An accounting measure used to quantify a firm's effectiveness ...
  6. Remittance

    The term most commonly refers to money being sent via mail or ...
RELATED FAQS
  1. Why would someone change their Social Security number?

    In general, the Social Security Administration, or SSA, does not encourage citizens to change their Social Security numbers, ... Read Full Answer >>
  2. Are spousal Social Security benefits taxable?

    Your spousal Social Security benefits may be taxable, depending on your total household income for the year. About one-third ... Read Full Answer >>
  3. What are the best ways to sell an annuity?

    The best ways to sell an annuity are to locate buyers from insurance agents or companies that specialize in connecting buyers ... Read Full Answer >>
  4. How are non-qualified variable annuities taxed?

    Non-qualified variable annuities are tax-deferred investment vehicles with a unique tax structure. After-tax money is deposited ... Read Full Answer >>
  5. Are spousal Social Security benefits retroactive?

    Spousal Social Security benefits are retroactive. These benefits are quite complicated, and anyone in this type of situation ... Read Full Answer >>
  6. Is Argentina a developed country?

    Argentina is not a developed country. It has one of the strongest economies in South America or Central America and ranks ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!