EURAUD has been trading sideways from the last couple of days, and I believe that the pair should continue to move lower in coming days. So, let us talk about intraday opportunities we have for this particular pair. EURAUD has a trend line on the daily chart as shown below. There is also a possibility of a head and shoulder forming as well. I think we should be looking to sell rallies in EURAUD.
There is a 20 candle ride on the 15 min chart as shown below. RSI is also getting close to the extreme. I think the pair may rally intraday, which can present us a sell opportunity. As long as the pair is trading below 1.4410, we should be looking to sell intraday rallies. Initial target should be around 1.4250 and final target could be 1.4200. Stop should be placed above 1.4410. In a case when we do not have a rally, then we can also enter a sell trade on the break of the trend line as plotted in the chart above.
If you wish to enter a buy trade to enjoy the rally, then you can also enter a buy trade after a bullish divergence is formed on the 15 min chart along with a bullish candle pattern. Target can be 30-40 pips.
Reviewing yesterday’s events and trades
US dollar is seen gaining some ground starting yesterday. After falling to monthly lows, US dollar is finally gaining some bids overnight. EURUSD and GBPUSD are trading lower. AUDUSD too traded lower after setting an Intraday high of 0.9483 yesterday. Canadian exports and imports data came better than expected yesterday, but the Trade balance data disappointed the market as some CAD selling was seen yesterday. US NFIB small business optimism and IBD/TIPP Economic optimism fell short of expectations, and declined to 93.9 and 38.4 respectively.
Fundamental Outlook for the day
Today is an important day as FOMC meeting minutes is scheduled to release later in the US session. It would be interesting to see what the FOMC members have to say about the September meeting. Any hints of QE tapering in near term may cause further strength in the US dollar. Other than this, US CB employment trends index is also lined up. Later in the Asian session, we have Australian employment data, and investors are keen to know how the data shapes out as any weakness may cause AUDUSD to decline further. So, keep an eye on all these events as there may be some volatile movements.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, GBPCAD, EURGBP, USDJPY, GOLD, AUDNZD, AUDCHF and DOW JONES.
Get it HERE: Vladimir’s Markets Forecast
Trade carefully friends. Happy trading!
