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. Products and Investments

    Cash vs. Stocks: How to Decide Which is Best

    Is it better to keep your money in cash or is a down market a good time to buy stocks at a lower cost?
  2. Chart Advisor

    ChartAdvisor for February 12 2016 (SPY, DIA)

    A weekly technical summary of the major U.S. indexes.
  3. Investing Basics

    Contingent Convertible Bonds: Bumpy Ride Ahead

    European banks' CoCos are in crisis. What investors who hold these high-reward but high-risk bonds should know.
  4. Investing News

    Who Does Cheap Oil Benefit? See This Stock (DG)

    Cheap oil won't benefit most companies, but this retailer might buck that trend.
  5. Credit & Loans

    What is an Alt-A Mortgage?

    Called "liar loans" for their low documentation requirements, Alt-A mortgages were hot until the subprime crisis. Now Wall Street wants to bring them back.
  6. Stock Analysis

    Analyzing Southwest Airlines' Market Share (LUV)

    Learn about how Southwest Airlines has grown and continued to operate profitability despite being in a notoriously volatile and economically sensitive industry.
  7. Financial Advisor Technology

    Advisors: Skimp on Technology at Your Own Risk

    Technology is rapidly transforming the way that advisors do business. Here are the areas where smart advisors are investing to gain a competitive edge.
  8. Your Practice

    Are AUM Fees a Thing of the Past?

    Although the assets under management fee seemed like a good idea for a long time, current market trends may be making it a thing of the past.
  9. Financial Advisor Technology

    Advisors: How to Deal With a Social Media Nemesis

    Here's how financial advisors with a social media presence can monitor and handle disgruntled client comments and pesky online trolls.
  10. Financial Advisor Technology

    The Top Robo-Advisor Trends in 2016

    The rapid growth of the robo-advisor market seems all but assured. Here are some possible developments to look out for in 2016.
RELATED FAQS
  1. When does a growth stock turn into a value opportunity?

    A growth stock turns into a value opportunity when it trades at a reasonable multiple of the company's earnings per share ... Read Full Answer >>
  2. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  3. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  4. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  5. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  6. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center