Hello Traders,
Earlier in the day we had building approval report from Australia, it came in lower than expectation with approvals shrinking in by 8.7% compared to September which also saw a net change of 1.8%. This triggered a bullish run in the Asian session and historically, what happens after such moves in the Asian session is a move down in the European session before a resumption of the initial move in the NY session.
In the weekly and daily charts, the bullish momentum is still on with clear buy signal especially in the weekly chart where there is an oversold stochastics which has printed a buy signal and most importantly a double bar reversal which confirms this two bar pattern reversal.
In the 4HR and 1HR charts, the down momentum is strong and I shall look to fade these moves immediately there is a strong buy signal formation with a two bar reversal pattern in the 15 min chart at yesterday’s key support zones. These support zones are at 1.4465, 1.4435 and lastly at 1.4380. if there will be a buy signal printed by the stochastics at any of these areas, look to buy.
Today fundamentals from Europe are mostly Manufacturing PMI data from France, Germany, Italy and Spain where the consensus is for an improvement in manufacturing PMI above 50. Later we have UK Manufacturing PMI at 0930 GMT, Crude Oil inventories at 1500 GMT and then there is ADP Non-Farm employment change 15 minutes before NY open. Employment in the ADP sector is set to improve with this release.
Otherwise look to trade as follows:
Buy: 1.4465
SL: 1.4430
TP: Trail your profits
Or,
Buy: 1.4435
SL: 1.44
TP: Trail your profits
Have a good trading day.

EURAUD 4HR chart-02.11.2016

Source: Dalmas Ngetich

EURAUD 15 Min chart-02.11.2016

Source: Dalmas Ngetich

EURAUD Daily chart-02.11.2016

Source: Dalmas Ngetich

EURAUD Weekly chart-02.11.2016

Source: Dalmas Ngetich

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