EURAUD shows a good trend and we might align both technical and fundamental reasoning behind it. EUR is under a QE programme and is accepted as a safe heaven despite the European turmoil whilst AUD is currently in risk on phase, gaining some ground recently.
That explains EURAUD shorts and we can try to capture the move. 1.5070-80 could reject the price (current price 1.5021) towards 1.4985 and the break of 1.4985 targets 1.4910 - L5 camarilla WPP. It is a shallow retracement but we can see a regular bullish divergence playing out so we could eventually might see another 1.5070-80 retest before next leg down. However, If we see no retracement than be prepared for the break of today's lows (direct drop) at 1.4985.
Positional sell trades are always best if taken at higher price levels so we can see a strong POC (50.0, EMA89, running triangle breakout, L3) in 1.5200-20 zone so IF the pair retraces within POC, the price should be rejected. Pay attention to correlation with EURUSD as it has been very strong (+78) so EURAUD is moving the same direction as EURUSD, the only difference is that EURAUD is much more faster than EURAUD, thus the range of the pair is wider.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
Recommended Content
Editors’ Picks
AUD/USD keeps the red below 0.6400 as Middle East war fears mount
AUD/USD is keeping heavy losses below 0.6400, as risk-aversion persists following the news that Israel retaliated with missile strikes on a site in Iran. Fears of the Israel-Iran strife translating into a wider regional conflict are weighing on the higher-yielding Aussie Dollar.
USD/JPY recovers above 154.00 despite Israel-Iran escalation
USD/JPY is recovering ground above 154.00 after falling hard on confirmation of reports of an Israeli missile strike on Iran, implying that an open conflict is underway and could only spread into a wider Middle East war. Safe-haven Japanese Yen jumped, helped by BoJ Governor Ueda's comments.
Gold price pares gains below $2,400, geopolitical risks lend support
Gold price is paring gains to trade back below $2,400 early Friday, Iran's downplaying of Israel's attack has paused the Gold price rally but the upside remains supported amid mounting fears over a potential wider Middle East regional conflict.
WTI surges to $85.00 amid Israel-Iran tensions
Western Texas Intermediate, the US crude oil benchmark, is trading around $85.00 on Friday. The black gold gains traction on the day amid the escalating tension between Israel and Iran after a US official confirmed that Israeli missiles had hit a site in Iran.
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu, WIF token’s show of strength was not just influenced by Bitcoin price reclaiming above $63,000.