This is most likely my least favourite “cross” to trade due to the volatility and I prefer trading GBP-crosses by far! However, we have a good set-up on this pair as well and the pair finally broke consolidation on Friday, resulting in a 1.5635 close and confirming the breakout of a range that has been in place since late June. However, the sell-off on Friday put the pair just 15pips above key support at 1.5620. This price handle played a significant role from February and March and also served as resistance on 23 May, attracting the bulls during the 20 June trading session.
As usual, it will take a daily close below this level to expose the next support at 1.5450/60 zone and resistance is around 1.5710/20. Only time will tell if the bulls will force a re-test of this resistance zone and this pair has a habit of retracing at least 50% of the prior week’s range, so keep this in mind if you take a trade on this pair.

EURAUD DAILY - 5 AUG

Source: MARYNA MURRAY

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