Chart of the day: EUR/AUD

Blake Morrow Forex Analytix

The EURAUD has completed a head and shoulder pattern after it's breakdown a few weeks ago on October 6th. The RSI is divergent, oversold as we hit the 88.6 Fibonacci retracement. The completion also comes in at the 1.5370 level. With the ECB tomorrow, the pair will be hard pressed to push much lower, so in the event of a more hawkish than expected ECB, a move back above the 1.5500 level could trigger a "short squeeze" back towards the 200dma near the 1.5740 level.

Author

Blake Morrow

Forex Analytix

Blake Morrow spent most of his professional career as the Chief Currency Strategist for Wizetrade group for 15 years, and then the Senior Currency Strategist for Ally Financial after the acquisition of Tradeking which owned the Wizetrade Group.

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