Economies of Eurozone and Australia are under the pressure. The ECB leaders can’t solve their biggest issue – boost of CPI and debt crisis. Apart from that, there is a massive concern regarding the “Brexit” and EU-UK asset sharing, as EU leaders no longer want their assets to be traded on London exchange.
On the other hand, there are problems in the economy of Australia due to slowdown of Asian economy and unstable commodity prices which is one of the key aspect of Australian economy.
If the leaders of European Central Bank decide to cut either the deposit facility rate or the interest rate it will have a negative impact on the European currency.
There is a similar situation with EURUSD D1 on EURAUD D1 price chart – the downward trend also starts to accelerate. Both indicators of technical analysis “Parabolic SAR” and “Awesome Oscillator” prove it. But traders have to keep in mind that fundamental factors prevail on this asset and commodity prices have a vital role in pricing on EURAUD.