EURAUD – Double Bottom in Place?

EURAUD – Double Bottom in Place?

For the past few weeks the commodity rally helped to fuel a one way move in Aussie that has taken even the staunchest bulls by surprise. But with oil, gold and iron ore prices starting to peter out the Aussie rally may be finally running out of gas.

As the assent of the pair has slowed it’s gains against other majors have slowed as well. A good case in point is EUR/AUD which looks like its starting to put in a double bottom at the key 1.4500 level. Although there is little on the horizon to propel euro higher, the gains in the cross could come just from the correction on the Aussie itself.

The holiday calendar is barren next week, but if the macro factors continue to dominate trade and unwind some of the recent gains of the past few weeks, EUR/AUD could be well on its way to 1.5000 before the month’s end.

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