Trade Recommendations for current Session
Today I’m looking for selling opportunities on EUR/AUD as nothing has really changed in terms of news flow overnight granting us little opportunity to trade. We have however had positive Chinese data which of course has a direct effect on the AUD and NZD.
Be cautious as the AUD is prone to coming under selling pressure and we also have data coming from the Eurozone today which could cause a slight EUR rally if positive, however fundamentally we know that the EUR is going to continue to fall.
I’ll only be looking to get into this position following a EUR rally and ride the trend back down, therefore I’ll be looking to take a EUR/AUD position around 1.4440 to 1.4450 with a stop loss around 1.4500 and a profit target of 1.4350 to 1.4370.
Overall Bias on this trade
Overnight we’ve data released regarding Chinese manufacturing PMI has been better forecast,economist continue to assert that the Chinese central bank will still be considering additional stimulus measures to boost the economy.This has of course been good news for the AUD and NZD and signals a temporary respite of negative sentiment regarding the currencies; the AUD benefited most from this with AUDUSD rising back above the 0.8900 level. Fundamentally AUD is still a bullish currency but it is worth noting that the RBA are actively doing all they can to weaken the currency.
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