Yesterday’s EURCAD LONG post hit Target 1 (1.4620) later in the day as the trickle of news out of Europe improved and the US Oil price remained firmly below USD 50 for a short term net gain of 70 pips. Target 2 remains at the psychological 1.4700. Today’s Eurozone news is that Spanish unemployment dropped to 18.9% in Q3 from 20.0% in the second quarter. The improvement is more pronounced than expected, but levels remain high, especially among the under 25s which is also a social problem and one of the reason behind the rise in support for protest parties.
The EURAUD also looks interesting on the daily chart. Yesterday’s large wick on the candle to a 17 month intra-day low of 1.4126 was quickly bid up to close the day at 1.4255. The overnight rally to 1.4300 prompted a long position for a short term Target 1, a little over the rising 14 DATR (0.0140), at 1.4410. The Target 2 is a little north of the 38.2 Fibonacci level and 20 DMA at the psychological 1.4500. The RSI remains positive at 40 and rising, the short-term stochastics are positive and rising and the Parabolic SAR turn positive yesterday too.
Chief Market Analyst
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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.
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