EURAUD Breakout In Sight?

EUR On the MoveThe Euro is pushing higher today and is doing particularly well on the crosses. A weaker USD is helping lift the single currency which is also being helped by some better-than-forecast data out of the eurozone today.  While the first look at eurozone GDP for the last quarter was seen negative, in line with forecasts at -0.1%, stronger-than-forecast eurozone and German ZEW data helped boost sentiment. Both readings came in well above forecasts with the eurozone employment change reading coming in above forecasts also.Repricing of Eurozone OutlookGiven how gloomy the eurozone outlook has grown over recent months, with a major focus on recession risks, the data is offering some hope and driving plenty of repricing. The ECB has warned over the downside risks facing the economy, feeding into a lower rates outlook from the market. However, with the caveat that further tightening might still be used if needed, today’s data shows that upside risks are still alive for EUR. Looking ahead today, if USD is seen falling further on the back of the October inflation report, this should help propel the Euro higher near-term.Technical ViewsEURAUDThe break below the bull channel proved short-lived with the 1.6461 area holding as firm support. Price has since moved back into the bull channel and is now testing the 1.6829 level. This is a key pivot for the market and a break higher here will be firmly bullish, paving the way for a move up to 1.7071 next. Indeed, looking at the Signal Centre today, we have a buy signal set at 1.6735 suggesting a preference to buy dips.