EUR/AUD Reverses Back to the Downside
Last week we found out that the European Central Bank was not in a hurry to raise interest rates while the Reserve Bank of Australia might be inclined to raise interest rates. These two events were somewhat of a change from what traders had been thinking and the result is a resumption of the EUR/AUD downtrend. Interest rates may be the biggest influencing factor in the value of a currency. Higher interest rates usually lead to a higher currency value while lower interest rates usually lead to a lower currency value. I would look for selling opportunities on the EUR/AUD as long as the pair remains below the 1.38774 high noted on the chart.
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