Forex: EUR/AUD dives below 1.2400 on strong China data

By FXstreet.com, January 09, 2013, 09:51:00 PM EDT

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FXstreet.com (San Francisco) - EUR/AUD took a significant dip to fresh 4-week lows on broad aussie strength after much better than expected Chinese trade data was reported Thursday, blowing through bids around the 1.24 figure and extending as low as 1.2360 where a short term base seems to have formed.

Technically speaking, the mentioned base coincides with 38.2% retracement support of the advance from 1.1603 to 1.2820. A break below there would open scope for a run to 1.2260 (Mar 2 low) and then 1.2210 (50% fibo). Last at 1.2375, 1.24 is now offered as immediate intraday resistance, then 1.2440. The Australian dollar is sensitive to data out of China, given the two nation's close trade ties.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing, Forex and Currencies

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