Let’s discuss about the EURAUD pair today, and related trade opportunities. The pair has recently bounced sharply from a major support area, as shown in the daily chart below. The pair also bounced from the weekly 20 moving average. This all suggests that the pair might continue to trade higher in the coming days.
Looking at the 4 hour chart of EURAUD, the pair has breached an important down-move trend line. The RSI is also above 50 level, which is another bullish sign, in my opinion.
Now, there are two ways to trade. First, if the pair drops a bit lower from the current levels, makes a stop and forms a bullish divergence, then we can jump into a buy trade. Another way could be if the pair forms a flag, as shown in the chart below, and breaks higher after some time, then also we can enter into a buy trade.
Initial should be around the 1.5460/70 level, and final target could be around the 1.5550 level. Stop should be below the 1.5130 level.
Reviewing yesterday’s events and trades
Yesterday, there were some interesting moves in the market. There were some key releases scheduled, including the BOE inflation report and the Australia’s employment data. The BOE was hawkish and upgraded their growth forecasts for the UK. This resulted in a major rally for the GBPUSD, as the pair traded above the 1.6550 level. Early in the Asian session, the pair managed to climb above the 1.6600 level. Furthermore, the Australia’s employment data came as a disappointment. The Australia’s unemployment rate climbed to 6.0% from 5.8%. The AUDUSD is trading lower after the release, and dived down more than 80 pips.
Fundamental Outlook for the day
Today, in the NY session, we have the US retail sales data and Jobless claims figures scheduled to be published. The Fed chairman Yellen is also scheduled to testify later during the day. So, we can again witness some action, as these events can ignite a volatility in the market. Later in the next Asian session, the Chinese inflation data will be published. These figures are very important, and may cause a lot of movements for the pairs like the AUDUSD, NZDUSD and EURUSD. So, we need to keep an eye on all these events while trading.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, USDJPY and NZDUSD.
Get it HERE: Vladimir’s Markets Forecast
Trade carefully friends. Happy trading!
