Interesting development on EURAUD as price is starting to narrow between recent highs and a munch longer term trend line. The uptrend started on 6th Sept 2022 after putting in a low around 1.43000 in late August.
Technicals
The uptrend line has provided solid support ever since, with bounces in January and June of this year. The January example is most interesting as price also started to narrow in a wedge pattern before breaking to the upside for an eventual 7.5% run.
I'm interested on both the Long and Short side, with a slight bias Long given the strength we've seen over the past year. A similar 7.5% run would see us hitting prices around 1.7800.
Macro
The wedge will break before the next ECB meeting on Oct 26th so we can't use that as a guiding factor. The next notable news event in the coming week is the release of the AUD monetary policy meeting minutes on Oct 17th which is close to the apex of the wedge.
Trades
I'm looking for intra-day moves, and so will use a breakout in either direction as a signal to watch the lower time frames for entries. There was a wedge break on CADJPY last month with provided several great long trades post break, so don't feel pressured to make a decision now. Wait for a CLEAR break, being cautious of fake out moves.
Technicals
The uptrend line has provided solid support ever since, with bounces in January and June of this year. The January example is most interesting as price also started to narrow in a wedge pattern before breaking to the upside for an eventual 7.5% run.
I'm interested on both the Long and Short side, with a slight bias Long given the strength we've seen over the past year. A similar 7.5% run would see us hitting prices around 1.7800.
Macro
The wedge will break before the next ECB meeting on Oct 26th so we can't use that as a guiding factor. The next notable news event in the coming week is the release of the AUD monetary policy meeting minutes on Oct 17th which is close to the apex of the wedge.
Trades
I'm looking for intra-day moves, and so will use a breakout in either direction as a signal to watch the lower time frames for entries. There was a wedge break on CADJPY last month with provided several great long trades post break, so don't feel pressured to make a decision now. Wait for a CLEAR break, being cautious of fake out moves.