Price has recently broke out of the key level 1.6100 and currently moving to test the yearly high of 1.6200.
Anticipation of seller may step in at 1.6200+- level to drive the price lower.
From H4 itself, we may see an initial stage of double top formation (if it does occur).
Stochastic at overbought region, if there is a reversal with a strong formation of rejection candle come with stochastic value crossing below 80 may indicating a reversal from there likely to occur.
Current DXY is testing its previous high of 93.30+-, if FOMC meeting minutes delivers a dovish statement with still no clear timeline on the bond purchase tapering, USD may fall of which may result a temporally bearish on EurAud.
Do take note that Australia is set to release employment data at 930am MYT tmr where market anticipate bad number due to the region lockdown due to pandemic. However, if the employment data is better than forecast, we may see a surge in AUD.
AUDUSD currently trading at 0.7250+-, it was in impulse bearish movement come with price correction (bearish flag patern) formation today at lower timeframe, we may consider to use these pair to hedge against EurAud, since sentiment on AUD is net short, fundamentally is still bearish, and technically where bearish is still in control.
Remarks from author
1)This analysis does not represent long or short trade immediately, it is solely on the author analysis
2)Trade at your own risk with proper lot sizing and follow your own trading plan
3)Risk management is always be the top priority
Anticipation of seller may step in at 1.6200+- level to drive the price lower.
From H4 itself, we may see an initial stage of double top formation (if it does occur).
Stochastic at overbought region, if there is a reversal with a strong formation of rejection candle come with stochastic value crossing below 80 may indicating a reversal from there likely to occur.
Current DXY is testing its previous high of 93.30+-, if FOMC meeting minutes delivers a dovish statement with still no clear timeline on the bond purchase tapering, USD may fall of which may result a temporally bearish on EurAud.
Do take note that Australia is set to release employment data at 930am MYT tmr where market anticipate bad number due to the region lockdown due to pandemic. However, if the employment data is better than forecast, we may see a surge in AUD.
AUDUSD currently trading at 0.7250+-, it was in impulse bearish movement come with price correction (bearish flag patern) formation today at lower timeframe, we may consider to use these pair to hedge against EurAud, since sentiment on AUD is net short, fundamentally is still bearish, and technically where bearish is still in control.
Remarks from author
1)This analysis does not represent long or short trade immediately, it is solely on the author analysis
2)Trade at your own risk with proper lot sizing and follow your own trading plan
3)Risk management is always be the top priority