EURAUD Chart Technical Outlook falls on fresh talk of Chinese optimism, big downside target is 1.6234
New day, new talk of Chinese support to the economy. Authorities in Beijing seem to be preparing some aid for the property sector and this implies higher demand for Australian metals. The Aussie is on the rise, and it has an easier path in doing so against the Euro, which is reeling from weak PMIs published on Monday.
Support is at 1.6354, the daily low and a resistance line from early July. It is followed by the critical 1.6324 level. Resistance is at 1.6447, where the 4h-50 SMA hits the price, followed by 1.6556.
