Riskier asset classes are starting to wobble following the sharp rebound from April’s lows. With signs the correlation between U.S. bonds and the dollar is strengthening again, it suggests the ‘sell America’ trade may be creeping back into favour—potentially an environment where the euro outperforms higher beta currencies.
With EUR/AUD testing horizontal resistance, it creates a setup that may suit the current environment. If it can hold above 1.7420 heading into the European open, you could look to establish longs above the level with a stop beneath for protection. The 50-day moving average and resistance at 1.7600 screen as potential targets. Momentum indicators have shifted bearish, so the setup is marginally going against the grain.
If EUR/AUD is unable to hold 1.7420, better setups may be found elsewhere.
Good luck!
DS
With EUR/AUD testing horizontal resistance, it creates a setup that may suit the current environment. If it can hold above 1.7420 heading into the European open, you could look to establish longs above the level with a stop beneath for protection. The 50-day moving average and resistance at 1.7600 screen as potential targets. Momentum indicators have shifted bearish, so the setup is marginally going against the grain.
If EUR/AUD is unable to hold 1.7420, better setups may be found elsewhere.
Good luck!
DS
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.