EURAUD – BUY – 6th April 2020

EURAUD – BUY – 6th April 2020 (Closed)

Good morning Forex Kings!

A fresh week, there are some interesting plays we are looking at.

We are going to start with the EURAUD. This morning the AUD and NZD have opened weaker.

This week we will see high impact data coming from Australia. On Tuesday we will see imports V exports, as well as the trade balance and the RBA interest rate decision.

The RBA is expected to keep rates on hold at 0.25% after taking an emergence rate cut last month. However traders will be looking at their statement for indication of future guidance.

Initially the Australian housing market began to recover with prices picking up in Melbourne and Sydney. The employment data also improved over the Christmas break.

Key themes to look out for in the statement, the strength of the labor market and housing market. The corona-virus is going to have a huge impact on unemployment which will have a detrimental effect on the housing market. Therefore we see the RBA possibly taking a further bearish stance. This means a weaker AUD.

Technical Analysis

EURAUD – Monthly Charts

We have seen a huge wick from last months market crash. We could be setting up for a similar scenario seen back in 2008. There has been a large wick, however these wicks generally get filled the following month (unless a rejection wick).

Keep in mind the global economy is on a knife edge and the AUD is a commodity related currency. The fundamental outlook for the AUD is bearish.

EURAUD – 4 Hour Charts

Trade Setup: BUY EURAUD – Market Order (Our Price 1.7950), stop loss set at 1.7800 and take profit left open to run, initial target 1.8230

Stop loss: 150 PIPS

Take profit: 280 PIPS

 

Trade Setup
BUY - Market Order

Entry
1.7950

Take Profit
1.8230

Stop Loss
1.7800