After a frustrating stalemate between bulls and bears over the last couple of months, it looks the bovine contingent is finally taking control of EUR/AUD.
From mid-June through last week, the cross spent more than two months consolidating in the 300-pip range between about 1.5600 and 1.5900. Rates exploded higher last week, surging from the bottom of that range to peek out above 1.5900 resistance. After a brief dip over Friday and Monday’s trade, the unit has broken to fresh 3-month highs, clearing the bearish trend line off the March peak in the process.
Meanwhile, the hourly chart shows general bullish momentum and a breakout from a high base / rounded bottom formation, signalling that another leg higher is likely from here, with bulls initially looking to target the previous highs above 1.6100
From mid-June through last week, the cross spent more than two months consolidating in the 300-pip range between about 1.5600 and 1.5900. Rates exploded higher last week, surging from the bottom of that range to peek out above 1.5900 resistance. After a brief dip over Friday and Monday’s trade, the unit has broken to fresh 3-month highs, clearing the bearish trend line off the March peak in the process.
Meanwhile, the hourly chart shows general bullish momentum and a breakout from a high base / rounded bottom formation, signalling that another leg higher is likely from here, with bulls initially looking to target the previous highs above 1.6100
Trade active:
Buy here with a stop at 1.5875 and a limit order at 1.6140. This is an 80-point stop, so be sure to adjust your position size to maintain consistent monetary risk on the trade.
Trade active:
EUR/AUD has moved nicely higher, boosted by a round of selling in the wake of Westpac's decision to raise mortgage rates. With the pair now testing the minor highs from back in late April, we're adjusting our stop up to 1.5958, just above our initial entry.
Trade closed manually:
taking profits