EURAUD Intraday Longs Then Shorts?

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July 29 2019

Hello traders,

I hope you are now on the beach somewhere, enjoying a well-deserved vacation with your family while reading this post. So you are like most of us who cannot be without market quotes for more than a day or two. So what’s going on FX these days and what its interesting?

We have seen some very nice bounce on the euro since Thursday after Draghi announced that easing was going to be delivered in September, on several fronts including rates. The best moves were not seen on EURUSD, but rather on some crosses pairs such as EURAUD. This is very volatile pair for the last few weeks and even months as EURUSD and AUDUSD diverge. I have been short EURAUD a few weeks back based on bullish Aussie and gold view (BTW I will make a video of that trade soon). But now it appears that we should be looking at the other side of the EURAUD trend. Why? Because pair accomplished a very nice five waves of decline from 1.6446, confirmed by a five wave rise on an hourly char. It looks like the beginning of a three-wave recovery, like a zigzag which will be a contra-trend move on a daily chart that I would like to short sometime in the future, but for now, attractive can be wave B retracement to catch wave C towards 1.6230 resistance.

I will be watching it very closely and let you know about the developments on twitter @gregahorvatfx

Trade well, GH