EUR/AUD back to ripping following huge rally and modest pullback earlier Tuesday

FXstreet.com (Barcelona) - The EUR/AUD rallied from 1.4442 to nearly 1.4840 in less than 36 hours from 8/18 to 8/20. After a mild pullback, the cross appears poised to continue higher.

Aussie Leading Index data due out to provide ST direction

As documented here yesterday, the rally that took place in EUR/AUD early this week was primarily fueled by “dovish” RBA comments in the minutes from their monthly policy meeting. Now, however, traders will get to focus on actual economic data rather than the thoughts and words of policy makers. At 00:30 GMT Wednesday, the monthly (for June) Westpac Leading Index for the Australian economy will be released. There are no market moving data points due out in Europe on Wednesday.

Technical outlook for EUR/AUD

Elliott Wave Technicians say that EUR/AUD is in wave “v of 5 of III” higher with an upside target of 1.5054 (from 1.4803 currently). Support for EUR/AUD comes in at the 20:00 GMT price from Tuesday at 1.4747 and is backed up by the pivot from earlier in the day at 1.4600.

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