Now that the market is past the CPI in Australia (strong data overnight), the market can look past that and towards the ECB next week. The ECB has been one of the more hawkish Central Banks recently, and we are not expecting that to change next week.
Technically, the EUR/AUD dropped to the "support zone" that we have noted since early 2021. Also, we hit the 38% retracement of the August lows to December 2022 highs.
A shallow 38% Fibonacci retracement keeps the bulls in charge near term. We are looking for a move back toward the 1.6000 level while we trade above 1.5230.
