We have been watching the recent weakness in Bund yields and other European rates driven by further lockdowns across Europe. meanwhile, given we are NOT risk bears we continue to use the AUD as the risk proxy for equities. EURAUD has failed in 1.6550/90 zone multiple times this year which gives nice risk reward short setup. Sell at 1.6540, stop above 1.6600,...
Price should continue its course to the 1.60000 area, on the daily we can see a clear retest of the zone (purple rectangle). On the 4 hour price is rejecting the zone as well as the 38.2 fib. level which could mean price will continue to dump. I will continue to hold since the structure hasn't changed on the daily. Please do not take this as financial advice this...
Please remain patient, we need this pair to give us a clear direction of where it would like to go. I have labelled the levels I am interested in, I will be waiting for breaks followed by re-tests and rejections before considering positions.
ERROR - bottom one should be hold BELOW
According to COT data - 55% long
I believe my initial analysis of this pair was incorrect, upon further analysis we can see divergence on the weekly TF, as well as price, breaking the weekly trendline
If you notice we also have a rising wedge pattern which is another indication of a change in trend
We will wait for a breakout and a retest before entry on a lower TF
This pair may provide a nice selling opportunity after breaking out of a long term ascending trend line as well as rejecting a key level, I expect the price to show some signs of rejection here now that we are touching the previous significant structure. If we see a good selling indicator from this level I will enter with my TP set at the key level marked.