This is quite tunneled vision as it will be like I’m recommending the same thing over and over again. But it would be worse and to some extend extremely unfair to ignore the positive correlation between the Euro NZD and AUD pair. As we saw yesterday, Euro appreciation is conditional and depends on if some key support and resistance lines are broken. In our analysis today, I will be preparing for some Euro gaining but first we prepare for the opposite scenario: that of Euro dipping below the support trend line in the daily chart. First, we must notice that in Q3, buyers were strong and continued pumping prices higher. Even though there is no stochastic buy signal in the daily chart, at least we have stochastics around the buy zone and besides, today’s candlestick didn’t follow yesterday’s script and ended up bearish.
In our entry chart, we have these clear stochastics buy signal and a couple of higher highs following a period of brief consolidation. Like yesterday, I recommend buyers to enter now but if you are conservative, a break and close above the minor resistance trend line would mean we shift of trend.
This is how we going to trade this pair:
Buy: 1.5340
Stop Loss: 1.5280-below this week’s low
Take Profit: 1.58-This month’s highs

Have a good trading day guys, nothing is coded on a rock we can make good use of your recommendation.

euraud daily chart for December 28, 2017

Source: Dalmas

euraud 4hr chart for December 28, 2017

Source: Dalmas

One thought on “EURAUD ANALYSIS”

  1. Charles Bidner says:

    Interesting analysis Dalmas. I am actually short this pair. After reading this post I went and reviewed my own position and still feel comfortable with my short position, entered using Pivots, however I have moved my stop down to just above WM2. Price is currently up off WS1/MS1 pivot cluster, I am 200 pips up so will also move my TP up the S1 cluster, taking note of your analysis and expected low volume/volatility for last trading session of the year. Thank you for the heads-up. Have a fantastic New Year!

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