Forex Trading Tips – selling opportunities on EUR/AUD

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Originally updated: 8:00am London Time

Trading Bias: SHORT

Currency pair: EUR/AUD

Current Sentiment: Bearish

In today’s trading session we will be focusing on selling opportunities EUR/AUD.

Fundamentals:

Overnight Australian Retail Sales came out higher than expectations. However that didn't really spur a market reaction, as the market was mainly waiting for the RBA rate statement. The AUD strengthened against all of it's major peers after the RBA kept rates on hold. It was expected by analysts despite the market calling for a rate cut. This saw an aggressive relief rally across all AUD pairs.

The RBA also hinted at further easing in the future and more AUD weakness in the period ahead. However the market has so far shrugged these comments off.

We can look for opportunities to short EUR/AUD over the rest of the session due to the EUR being fundamentally weak whilst having some positive AUD sentiment.

Technicals:

We expect this pair to sell off during today’s session.

There is resistance at 1.4250 which could provide trading opportunities should the price pull back. Look for the price to bounce off this level if it retraces back to it.

Remember to be aware of intra-day news as this can very often change the sentiment which makes our trade weaker. Be aware of any news that could be positive for this pair. It would change the sentiment to bullish.

Other Market Moving News:

Also on today’s calendar we have UK Services PMI in the European morning. However there's no tier 1 data points later in the US session, so it could be a quiet afternoon.

P.S - If you want to learn more about how I trade, check out this link below
Forex Peace Army - Jarratt Davis
 
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ernest02

Private
Messages
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Jarrat this is your "friend" Ernest requiring some advice. Although I am mainly a technical trader that also use price action for entering trades, I am investigating if Fundamental Analysis can bring an improved perspective to my trading. I understand why the Aussie surged ahead on the Interest announcement while keeping to the same interest rate with no change, but I cannot understand why the GBP lost strength when the Sevices PMI came out much higher than expected at a figure which was the highest over the last 7 months. The GBPUSD promptly lost about 60 pips in the 5 minutes after the announcement. Now I would have expected rather the opposite. Can you clear up the mist for me please?
 
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