FOREX Chart Of The Day: EURAUD Breaks Range
EURAUD hits target but what now?
The forex pair is breaking out of a weekly range, which could offer further long opportunities.
Watch the video to learn more…
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, head currency analyst.
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In this video, we’re going to take a look at EUR/AUD. The price has recently hit our targets and just looking to see if we have any further opportunities.
I really liked EUR/AUD because the price has changed cycle on the daily time frame, and it really had a nice pullback into the previous structure highs.
We said to ourselves if price retests the previous structure, can we look for those opportunities to the upside? We look for the market to be bought above this high in here, stops below those lows.
The market then rallied up nicely. Came back on us back on us a little bit at first, and then prices continued to break higher.
Now we are or have approached a key-level and broken through it currently, and we have all these highs just through here. That price has broken through.
Now, if I just go to a weekly time frame and look left and just drag this box all the way left– we can see that it’s actually a pretty significant level on EUR/AUD. The past few times, the price has been in this area in the weekly time frame. We’ve seen price reject.
So, it’s quite significant that price has broken through this area here. We had this nice sort of range recently from May, and the price is now breaking above those highs.
What we really would like to see here on this daily time frame is a continuation of this move higher. If price gives us two consecutive closes above this area, we could then look for long-term long positions on EUR/AUD, as the price would have taken this key-range out through here.
Obviously, strength from weakness, we looked at in the Forex Market Outlook. We’re looking for the Australian Dollar to weaken slightly. So we’re looking for that continuation.
Euro didn’t have its best performance last week. But notice looking at today we can see that it has performed quite well. We can see across multiple pairs that Euro has gained some significant strength.
Looking at this, it looks to me like we could see some further upside on EUR/AUD. What we could anticipate is some short-term upside as well. What we would look for is the fact that price has changed cycle here on a four-hour. It’s consolidated, it’s rallied up.
We could even look for a potential long position in the short term if we get a retracement back into these four-hour highs.
What we could anticipate is if tomorrow we get a pullback into those highs, a rejection. We could get a short-term, long opportunity. And then if the daily time frame starts pulling back, I’d expect a retest of the range highs and then a continuation on that daily time frame.
So a couple of different options here to look at EUR/AUD, but we need to see if price gives us this key range breakout. Will price continue to the upside, and things are looking quite positive here on EUR/AUD for some further long opportunities.
I’ll leave it there. Thanks for watching this video update, and I’ll speak to you soon.
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