EUR/AUD: Euro pulling back ahead of Lowe RBA speech

• The Governor of the Reserve Bank of Austalia is set to speak at 21:35 GMT. 
• The ECB Governing Council meets on Thursday. 

The EUR/AUD is trading at about 1.5865 down 0.13% on the day retracing from the high made at 1.5938 yesterday. 

Philip Lowe, the Governor of the Reserve Bank of Australia is scheduled to make a speech on Tuesday at 21.35 GMT. 

The main macro event for the week in the Eurozone is the ECB meeting on Thursday where President Mario Draghi and his colleagues will discuss key monetary policy issues, however, market participants are not expecting major changes in the guidance, according to analysts.  

Coming up next for the Eurozone, Wednesday sees the GDP data q/q expected at 0.6% and y/y expected at 2.7%. Still on Wednesday, the GDP data for Australia is expected at 2.5% y/y and 0.6% q/q. 

In reaction to Trump’s proposal on tariffs, the National Australia Bank in a comment said an escalation in trade tensions between the US and other major nations is not good news for the Australian dollar.

The EUR/AUD is now sitting at the 23.6% Fibonacci retracement level which is acting as support. The next support is likely the 1.5800 level with the 32.2% Fibonacci retracement just nearby. Key support is seen at the confluence level of 1.5730 with the 100 SMA and the 61.8% Fibonacci retracement level. To the upside, the first resistance to push through for bulls is the high made on Monday at 1.5935. Further up, about50 pips above is the 1.600 psychological level, if it is taken out the bulls will likely target 1.6250 figure and cyclical high.  

EUR/AUD 4-hour chart