Had been meaning to post this trade setup earlier today but did not get a chance. EUR/AUD bounced off the channel support. I am looking for a move back to the channel top and then sell it for a move down to the 1.37 levels.
AUD/NZD seems to be setting up a higher low after the rally from the 1.18 levels. The RSI is showing leading indications of a move higher. I will be looking to buy a break and retest of the 1.1950 region with stops below 1.1880 and targets above 1.21.
EUR/AUD has broken out of the trend channel that had guided it higher from the 1.3350 level. The pair may be ripe for a correction. The RSI is also showing divergence confirming my view. I am short from 1.4005 with stops above 1.4050 and targets of 1.39 and 1.3750.
This week turned out to be extremely eventful with major selloffs in USD pairs and JPY strength which reversed post NFP. One consistent theme throughout the week was the continued weakness in AUD and NZD. The remarkable weakness in AUD and NZD pairs has seen critical levels been broken without...