EURAUD (IDEA)

EURAUD has successfully broken out of its 4 month consolidation pattern to the upside and is now ready to test old August and September 2015 highs.

The warning for an upward breach of the downward sloping trendline already came in early December 2015, at this time the momentum trendline was crossed to the upside and led EURAUD to rebound to 1.51.

In the meantime, EURAUD has advanced further, crossed above the multi-month downward sloping trendline yesterday (showing upward strength), successfully tested and rebounded from this line today. This area (red line) is now acting as major support. Momentum is align with price and MACD bounced off theĀ 0 line which is also positive for EURAUD.

Along with this latest action and the positive technical outlook, I believe in significant upside in this currency cross within the next couple of weeks.

BUY at around 1.5618
SELL LIMIT (TARGET) at 1.61 (+482 PIPs)
SELL STOP (RISK) at 1.5325 (-293 PIPs)
RATIO: 1.65
TIME HORIZON: less than 3 Months

EURAUD-08012016-daily

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One Reply to “EURAUD (IDEA)”

  1. The timing for my trading idea was ideal as EURAUD spiked more than 400 PIPs just a few days after my idea release. My projected target of 1.61 or 482 PIPs above my opening level (1.5618) got tested two times, but missed by only 22 PIPs (!!). This is very unfortunate. Nevertheless, this is part of the game. Meanwhile, the cross has been experiencing quite some volatility and setbacks to previous lows occured. This afternoon, EURAUD made new lows (1.5306) and triggered my stop loss level at 1.5325 accordingly.

    Given the most recent AUD strength accross the table, the momentum support line break (see red eclipse) along with the breach of the channel support line in EURAUD (daily – see red eclipse), I would not chase further upside in this currency pair.

    Instead, sell into weakness to lower lows and take 1.4850 as first and 1.4355 (Dec 15 low) as second target. Remember to watch AUDUSD, WTI and S&P 500 closely (inversely correlated to EURAUD).

    EURAUD-28012016-daily

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