EUR/AUD relentless to break through 1.4260; still at 50-day depths

FXstreet.com (Chicago) - EUR/AUD reached 50-day bottoms after hitting 1.4238 session lows shortly after the closing of the American trading session. The pair extends inconclusive short-term upward trendline with higher lows ahead of Tokyo but fails to break through 1.4260 zone.

The National Australia Bank’s business confidence outperformed expectations to reach 6 vs. past -3 results, boosting the Aussie’s strength across the board. Ahead of the Westpac Consumer Confidence index due later, the pair trades at 1.4252 between supports at 1.4232 (July 12th lows), 1.4166 (July 25th lows) ahead of 1.4068 (July 11th lows) and resistances at 1.4292 (September 7th lows), 1.4344 (September 4th lows) followed by 1.4417 (July 27th highs). Earlier in Europe, the Italian GDP failed to meet expectations and was -2.1% vs. projected -2.0. On potential peaceful negotiation, the markets seemed complacent in regards to Syria and closed higher with the CAC40 up 1.89%, the DAX up 2.06% and the Euronext up 1.61%. The Australian ASX All ordinaries gained 0.38%.

According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis and is offered below the EMA20 while market participants wait for President Obama’s announcement on Syrian conflict updates at 1GMT.