EURAUD finds itself at resistance (88.6% Fibonacci retracement) inside of a weekly sell zone with the 4HR Stochastics overbought and RSI diverging.
We are expecting RBA Monetary Policy Meeting minutes at 02:30GMT which could be the catalyst that moves EURAUD.
A hawkish tone from the RBA could send EURAUD lower, and a poor German GDP print at 07:00GMT would further help push price lower.
We are expecting RBA Monetary Policy Meeting minutes at 02:30GMT which could be the catalyst that moves EURAUD.
A hawkish tone from the RBA could send EURAUD lower, and a poor German GDP print at 07:00GMT would further help push price lower.
You may notice a "Long Position" box on my chart above. I accidentally left this on when publishing this idea after talking to one of our clients about the dangers of buying into resistance.
He questioned our sell signal at 1.15, saying he had just gone long after seeing a Bullish Engulfing Candle on the 4HR chart in a strong uptrend.
We too see decent returns on this very simple strategy, but we also employ a few filters to reduce our losing trades, one of which is fundamental analysis and the second is pivot points.
Our analysis of this pair is too lengthy to go into detail in this post, however we decided that against a backdrop of a falling Euro due to comments from the ECB about delaying their tightening of monetary policy, and generally decent and on-trend data out of Australia, we would like to Buy AUD and Sell EUR.
Price gave us the perfect entry on Tuesday. We were running up into the 1.15 even handle/88.6 Fib/Weekly M3 confluence area and running out of steam.
We placed a sell order below the last low at 1.49562 and are now in this trade for 180+ pips.
Our client closed his long position for a profit of 22 pips on our advice, and is in the short with us too.