Given Mario Draghi’s dovish remarks during yesterday’s press conference about a review of monetary policy, weakness in the EUR has prevailed against higher yielding currencies. The AUD , as a higher yielding currency, should do well against the EUR over the long term. However, there is a risk that the EUR could bounce back in the short term if the current global risk sentiment spikes higher again.
Current price remains within the upward sloping channel line , so I will look for prices to return towards the lower end of the channel before entering any new long positions.
My strategy for the EURAUD pair in the short term is to play the short position for a 1.5180 target ( Target 1) , as trade 1 , ahead of potential support from buyers for a re-entry , trade 2, as a buy order around 1.5090 for a 1.5610 (Target 2).
Chief Market Analyst
If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:
About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.