EURAUD In Holding Patter For Now
The EURAUD breakout trade hit its target at 1.5876 and has since been stuck in a block of consolidation between that level and the 1.5671 level support. Price action have been contained within this section over the last 6 weeks as the market awaits fresh directional drivers. For now, the current price action remains corrective to the longer-term downtrend. However, the duration of the move since February lows is starting to feel more like basing action, suggesting room for a further push higher.
The last retest of the 1.5671 level support has seen a large bullish pin bar forming, suggesting the room for rotation higher within the range. With MACD and RSI both bearish here, there is plenty of room for the move to gather pace if we head north again and on a break of 1.5876 bulls can target 1.5696 initially and 1.6115 thereafter.
Key Data to Watch
Today’s ECB meeting minutes will be the only key data for this pair over the remainder of the week. Given the subdued tone of the last meeting, there is unlikely to be much in the way of market moving information though traders will be keen to identify any details which offer clues as to potential ECB tapering.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.