Daily Analysis: Eyeing EURAUD to form a top for a sell opportunity

0
662

Today we have an interesting opportunity for EURAUD as I think the pair is still trading inside a range and currently approaching a critical resistance on the daily chart as shown below. So, I think we should look forward to sell EURAUD from the range highs.

Looking at the 4 hour chart of EURAUD, the pair is creating a bearish hidden divergence. The pair is also forming a band-to-band move on the 4 hour chart. There are three resistances on the way up – 1.4420, 1.4450 and 1.4500. In order to enter a sell trade, we need the pair to make a stop at any of these levels and create a combination of divergence on the 4 hour chart (hidden) and 1 hour chart (continuing).

Initial target should be around the 4 hour 20 moving average and final target could be around the last low of 1.4150. Stop should be placed above the next major resistance.

Reviewing Friday’s events and trades
Friday was an interesting day as the US Nonfarm payrolls registered a healthy rise of 204K jobs in October. The market was expecting a decline from 148K to 125K. The unemployment rate climbed 0.1% from 7.2% to 7.3%. Furthermore, Michigan consumer sentiment missed the expectations of 74.5 with a reading of 72.0. Overall, the market was happy with the outcome as the US dollar climbed higher against most of the major currencies.

Fundamental Outlook for the day
There is no high-risk event scheduled for the US during the day other than NFIB small business optimism. Earlier in the EU session, UK’s inflation data was released, which registered a decline from 2.7% to 2.2%. Furthermore, RBNZ financial stability report, Australia’s Westpac consumer confidence and the wage price index are lined up in the upcoming Asian session. So, one need to keep an eye on these events if trading any of the Asian currencies. There are some recovery signs noted from the China as well, which may help the Asian currencies.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, EURGBP, GBPUSD, NZDUSD, AUDUSD, AUDCAD and USDJPY.
Get it HERE: Vladimir’s Markets Forecast

Trade carefully friends. Happy trading!

Click To Join Our Community Telegram Group

Subscribe
Notify of
guest

0 Comments
Inline Feedbacks
View all comments