The longer view of the EUR/AUD suggests EUR out performance and/or AUD under performance for the next several months. It appears red wave [C] was an ending diagonal. Therefore, the 1.36 low should be solid.
Since the circle 5 low did not reach the lower trend line, this expresses some pent up energy available. Breakout trades to the long side are preferred. I placed a stop loss near 1.4125 which is the top of a small wave 1.
If 1.4125 fails to hold, it will allow the opportunity to position to the long side from lower levels near 1.39.
1.53 is a minimum target for this long trade with a tight risk to reward ratio. Next levels to target suggest 1.58, 1.63, and 1.79.
June 10 - we just saw a revisit of 1.4500 moments ago...there is some support in this area.
1.4350 is the stop loss on this medium term move to the upside. 1.5300 is the first target for a large RR ratio.
DavidRoberts
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Stopped out! :S
JWagnerFXTrader
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Where did you get in and where was the stop loss placed...if you don't mind me asking?
DavidRoberts
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In 1.4528 Stop 1.4453
I think I tightened the stop at some point....perhaps I shouldnt have!
andrewcountry
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Any up date? thanks in advance!
JWagnerFXTrader
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Chinese CPI comes out tonight - China and Australia have strong trade relations so hotter than expected CPI readings may increase the value of the AUD and drive the pair lower. Tame readings may cause the AUD to sell off. Not trying to predict the value of AUD around news...be warned for the increased potential for volatility on the pair. See previous comment for levels to consider if the pair sells off (1.4500).
JWagnerFXTrader
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The move off Friday's low appears corrective. A revisit of 1.4500 would offer an opportunity to position long. A break above today's high of 1.4625 breaks it above the corrective channel.
JWagnerFXTrader
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We're on top of the equal wave measurement off the highs right now (1.4533). Looks corrective off the highs suggesting the likelihood of an eventual move higher.
DavidRoberts
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Playing out well so far! ;-)
JWagnerFXTrader
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It has, thankfully.
I just added another post (see related link above). Since we surpassed the equal wave measurement of purple degree, we can add to the position in smaller size and move the stop loss up to 1.4350.
1.4350 is the stop loss on this medium term move to the upside. 1.5300 is the first target for a large RR ratio.