EUR/AUD: Sharp reversal down ahead of ECB

• Buyers failed to push the price higher than 1.6000 on lower Australian GDP. 
• Small ranges before the ECB meeting on Thursday.

EUR/AUD daily chart

The EUR/AUD is trading at around 1.5863 after attempting to reach the 1.6000 psychological level as earlier on Wednesday the Australian GDP rose 0.4% Q/Q and 2.4% y/y in Q4 2017 and missed the market expectations. 

The negative sentiment on gold and commodities had no noticeable effect on the EUR/AUD as the pair was mostly sideways to down throughout the all day. Technically the last hours of trading of the  EUR/AUD looks very similar to the EUR/NZD price action with the price coiling around the 100 and 200-period simple moving average on the 15-minute chart. To unlock this situation is most certainly going to be the ECB meeting on Thursday. Draghi is expected to leave the asset purchase unchanged at $30bn per month until September 2018. 

Australian Import, Export and Trade Balance shouldn’t be a market mover as investors are waiting for the ECB meeting before committing more capital to either side of the trade. 

EUR/AUD 15-minutes chart

The EUR/AUD is sitting at 1.5860, the S1 pivot, forming a double bottom with the down leg earlier in the NY session. The next key support is seen at 1.5770 which is the S2 pivot. Resistance is seen around the 1.5900 figure with the 100 SMA and the daily pivot 13 pips above. A break above 1.5913 could lead around 1.5980 resistance which was the high of the day.