EURAUD shows a good trend and we might align both technical and fundamental reasoning behind it. EUR is under a QE programme and is accepted as a safe heaven despite the European turmoil whilst AUD is currently in risk on phase, gaining some ground recently.
That explains EURAUD shorts and we can try to capture the move. 1.5070-80 could reject the price (current price 1.5021) towards 1.4985 and the break of 1.4985 targets 1.4910 – L5 camarilla WPP. It is a shallow retracement but we can see a regular bullish divergence playing out so we could eventually might see another 1.5070-80 retest before next leg down. However, If we see no retracement than be prepared for the break of today’s lows (direct drop) at 1.4985.
Positional sell trades are always best if taken at higher price levels so we can see a strong POC (50.0, EMA89, running triangle breakout, L3) in 1.5200-20 zone so IF the pair retraces within POC, the price should be rejected. Pay attention to correlation with EURUSD as it has been very strong (+78) so EURAUD is moving the same direction as EURUSD, the only difference is that EURAUD is much more faster than EURAUD, thus the range of the pair is wider.
