Today let us discuss about the EURAUD pair and related trade opportunities. The pair has bounced sharply from the 1.4500 area after creating a bullish divergence. The pair is now facing an intermediate resistance at around 1.4760 level. The 200 simple moving average on the 4 hour chart also sits around the same level. I think selling rallies should be preferred in the short term.
Looking at the 4 hour chart of EURAUD, there is a major resistance zone at around the 1.4830-60 levels. If the pair trades closer to the mentioned resistance zone, makes a stop and creates a bearish divergence, then we can jump into a sell trade.
Initial target should be around the 20 moving average, and final target could be around the 1.4600 level. Stop should be placed above the 1.4920 level.
Reviewing yesterday’s events and trades
There was no major economic release scheduled in the US and the Euro zone yesterday. There were only a few low-risk economic releases, which did not have any effect on the market. The market mostly traded in a range. Earlier, during the Asian session, the RBA meeting minutes were published, which caused a downside in the Australian dollar against US dollar. The AUDUSD and NZDUSD pairs are trading lower intraday.
Fundamental Outlook for the day
Today. There is no major economic release scheduled in the US, which means we can have another quiet NY session. However, there can be some moves due to the economic releases in the London session. Later during the next Asian session, there are few key economic releases scheduled, including the Japanese imports, exports and trade balance data. Moreover, the Australia’s Westpac consumer sentiment and wage price index will also be published. These events can cause some moves during the Asian session.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, USDJPY, EURGBP, NZDUSD, AUDUSD, EURCAD, GOLD, OIL and INDICES.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
