Trading Opportunities in EUR/GBP and EUR/AUD
Market structure argues that it is better to be long EUR than GBP and perhaps even EURGBP outright. Keep an eye on the EURAUD as well…conditions are specified that would trigger a trade.
Euro / British Pound
Daily Candles
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Are you new to FX or curious about your trading IQ?
FOREXAnalysis: It’s all about 5s and 3s (5 waves = trend and 3 waves = countertrend). A long term bullish argument can be made from the current level as 1) the declines from .8814 and .9804 (see next 2 charts) are in 3 waves, 2) the rallies from .7751 and .6535 (see 2 charts down) display impulsive characteristics and 3) former 4th wave low areas are providing support across multiple degrees of trend. The rally has stalled below the 38.2% of the drop from .8814. Expect support down at .8485 if reached and. Focus for the rest of April is on the uncovered close / 61.8% retracement at .8649/60 although the 2/25 close and 50% retracement at .8612/14 will probably inspire a reaction.
FOREX Trading Strategy: Pending long at .8490, stop .8405, target half at .8650 (other half will be trailed as market action dictates). Watch the London open for entries in this cross.
Euro / British Pound
Weekly Bars
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Are you new to FX or curious about your trading IQ?
Euro / British Pound
Monthly Bars
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Are you new to FX or curious about your trading IQ?
Euro / Australian Dollar
Daily Bars
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Are you new to FX or curious about your trading IQ?
FOREXAnalysis: The bigger picture EURAUD trend must be considered sideways at the moment but the outside week reversal (last week) from just above the November low and 61.8% retracement of the August 2012-February 2013 rally argues for at least several more weeks of gains. Near term pattern is constructive towards with 5 waves off of the low (see below chart) and today’s low forming at the former 4th wave low.
FOREX Trading Strategy: Want to be long now but not until either a push above 1.2565 with a stop at whatever the low for this week is (currently 1.2364) OR next week (we’ll have to see where price is on Sunday/Monday). Stops are always critical but even more so in this situation with the potential for a bullish AUDUSD breakout. The objective is 1.2700-1.2800.
Euro / Australian Dollar
60 Minute Bars
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Are you new to FX or curious about your trading IQ?
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter for real time updates @JamieSaettele
Subscribe to Jamie Saettele's distribution list in order to receive actionable FX trading strategy delivered to your inbox.
Jamie is the author of Sentiment in the Forex Market.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
