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Downbeat Australian jobs data could keep dragging the Aussie lower for the next sessions, and this pullback on EUR/AUD could bring a nice entry opportunity.

Are buyers waiting to go long at these Fib levels?

Before moving on, ICYMI, today’s Daily Asia-London Session Watchlist looked at AUD/CAD’s descending triangle setup. Be sure to check that out to see if there is still a potential play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Canada’s ADP non-farm employment change at 1:30 pm GMT
  • U.S. Philly Fed index and initial jobless claims at 1:30 pm GMT
  • BOC Governor Macklem’s speech at 4:00 pm GMT

What to Watch: EUR/AUD

EUR/AUD 1-hour Forex Chart
EUR/AUD 1-hour Forex Chart

This pair recently busted through the ceiling at the 1.5700 mark, then zoomed up to the 1.5800 area before retreating.

Can this pullback draw more buyers in?

Using the handy-dandy Fib tool shows that the former resistance lines up with the 50% level while the 61.8% Fib coincides with the 100 SMA dynamic inflection point.

If bulls return at any of these levels, EUR/AUD could set its sights back on the swing high or higher!

Keep in mind that the Land Down Under just printed a dismal headline employment figure for April, as the economy lost 30.6K jobs instead of posting the estimated 20K increase.

Although the underlying data reveals a pickup in full-time hiring, the drop in labor force participation and the expiry of the government’s JobSeeker subsidy could weigh on employment prospects.

In addition, risk-off flows stemming from geopolitical tensions in Israel could also drag the higher-yielding Aussie south for the rest of the day.