Forex Flash: EUR/AUD eyes pullback across multiple timeframes – Westpac

The EUR/AUD is showing tentative signs of pullback after a steep rise – near-term the pair should consolidate around 1.2930/1.3050. However according to Sean Callow, an FX Strategist at Westpac, “Given evidence that
Japanese investors
are rebuilding EUR
holdings partly at the
expense of AUD risks for the EUR/AUD are to the upside over the next 2-3 months, perhaps as far as 1.3300.”

This will depend on the Eurozone maintaining its improved financial conditions – hardly a certainty given the rolling political crises of the past few years. “Indeed on a 6-12 month outlook we see EUR/AUD back to 1.2500.” Callow predicts.