FX:EURAUD   Euro / Australian Dollar
Morning traders,

Looking at a short setup on Euro versus Australian dollar after last nights inflation data out of Australia coming in at 1.3% versus 1.5% expectation leading to a 140 pip spike higher in this pair. The miss on inflation suggests, in simple terms, points to slowing growth and creates a lower expectation of the Australian central bank raising interest rates. In fact there is growing expectations that they may instead need to cut interest rates due to a slowing economy and a housing market that is extremely overheated.

Back to the technicals on this pair, so the spike of 140 pips has taken the pair up to a resistance level that dates back to early March. The spike itself was on very low volumes when compared to recent trading and as such was not able to break through resistance and is currently 40 pips off the headline spike. Unsurprisingly the move shows as over valued on every technical indicator. We are looking to take advantage of a pull back from these highs with expectation that the bulk of the move back lower will occur overnight during the Sydney trading session.

As always this is not a trade recommendation and simply technical observation.

Good luck trading

from the Team at forexTrdr

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Apr 25
Trade active: Trade running 30 pips profit and through take profit 1.

Stop loss set to entry and now a risk free trade
Lovely trade setup mate
forexTrdr ApexFX_Pro
@ApexFX_Pro, thanks- got similar going on in EURNOK on back of Riksbank- just put out the idea.

Spike on headline, into overbought, bounce of resistance and pulling back
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