EUR/AUD pair rose during the Asian trading period on Thursday for the third day in a row, with monthly building permits falling from Australia this morning, and on the other side of the eurozone, most of the inflation data from European countries such as Germany yesterday and Spain declined today, pending key inflation data from the eurozone as a whole next Friday.

Technically, the EURUSD pair rose on the hourly timeframe near the downtrend levels and rebounded from it downwards, and we still expect further retracements of the pair during the coming period, especially after retesting the daily resistance of 1.6400, which pushed the pair down.

We expect the pair to reach the levels of 1.6295 in the near term and then the levels of 1.6225.

This scenario fails if the 1.6405 levels break higher.