Potential trade setting up on EUR/AUD this coming week.
USD is weakening in strength (AUD and is in anti-correlation with USD) and the USD INDEX is hitting major resistance which translates into great indications for a stronger AUD and a weaker USD, especially against a weak EUR.
We can also see that the order flow is going towards AUD.
- However EUR is expected to gain in strength but AUD will still be stronger so this trade is looking good.
- Pullback is for selling.
Correlating pairs: AUD/CHF ( GBP/AUD ).
See chart for more details.