The Euro started a solid upside move from the 131.22 swing low against the Japanese Yen. The EUR/JPY pair moved higher and surged past the 132.00 and 132.50 resistance levels.
During the uptrend, there was a break above a bearish trend line at 131.65 on the hourly chart. The upside move was such that the pair traded as high as 133.22 before starting a short-term correction.
It tested the 23.6% Fib retracement level of the last wave from the 131.22 low to 133.22 high, and is currently preparing for further gains. On the downside, there is a key bullish trend line forming with support at 132.70 on the hourly chart.
If the pair corrects further, the trend line support and the 38.2% Fib retracement level of the last wave from the 131.22 low to 133.22 high are likely to act as a good buy zones.
Today in the Euro Zone, the Italian Consumer Confidence for Nov 2017 released by the Istat. The forecast was slated for a rise in the index from the last reading of 116.1 to 116.4.
The actual result was below the forecast of 116.4 as there was a decline in the index to 114.3. The last reading was also revised down from 116.4 to 116.0. Moreover, the Business Confidence declined from the last revised reading of 110.9 to 110.8 in Nov 2017.
The Euro also moved higher and broke the 1.5600 resistance against the Aussie dollar. The EUR/AUD pair traded above two important bearish trend lines at 1.5550 to clear the path for more gains.
The pair traded as high as 1.5696 before starting a short-term correction. On the downside, an initial support is around the 23.6% Fib retracement level of the last wave from the 1.5458 low to 1.5696 high.
Below 1.5640, there is a major bullish trend line forming with support at 1.5600 on the hourly chart. Therefore, any dips from the current levels toward 1.5640 and 1.5600 remain supported.
On the upside, a break above 1.5696 would call for a test of 1.5720 followed by the next hurdle near 1.5740.
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