Euro Holds June Range Despite Reports Of ECB Inflation Downgrade

DailyFX Table

Currency

Last

High

Low

Daily Change (pip)

Daily Range (pip)

AUD/USD

0.7557

0.7566

0.7500

The Australian dollar extends the advance from earlier this week following the better-than-expected 1Q Gross Domestic Product (GDP), and the aussie-dollar exchange rate may continue to track higher over the coming days as it breaks out of a bearish formation.

Keep in mind, the broader outlook for AUD/USD remains relatively flat as the Reserve Bank of Australia (RBA) appears to be in no rush to lift the official cash rate off of the record-low, and the pair may continue to operate within the 2016-range as Governor Philip Lowe and Co. persistently endorse a wait-and-see approach for monetary policy.

AUD/USD Daily

AUD/USD Daily Chart

Topside targets are back in focus for AUD/USD following the failed attempt to test the May low (0.7329), and the pair may extends the recent series of higher highs & lows as it shows a more meaningful break of channel resistance.

The Relative Strength Index (RSI) highlighting a similar dynamic as it clears the bearish formation carried over from earlier this year, but will keep a close eye on the oscillator as it climbs towards overbought territory.

Nevertheless, AUD/USD is quickly coming up against the first topside hurdle around 0.7580 (38.2% retracement) to 0.7600 (23.6% retracement), with the next region of interest coming in around 0.7650 (50% expansion) to 0.7680 (23.6% retracement).

Currency

Last

High

Low

Daily Change (pip)

Daily Range (pip)

EUR/USD

1.1274

1.1282

1.1204

EUR/USD struggles to hold its ground ahead of the European Central Bank (ECB) interest rate decision amid reports the Governing Council will reduce its inflation forecast through 2019, and the single-currency stands at risk of facing a kneejerk reaction as the Governing Council appears to be on course to preserve the zero-interest rate policy (ZIRP) throughout 2017.