Good afternoon team,
The GBPUSD and CADJPY are holding on a key support zone, I am not looking to hold any drawdown with these positions so if they return to break even we may look to close down (I will keep you posted). Both of these trades are suggesting a risk-off sentiment in the market (USD and JPY strength). The EURAUD has grabbed my attention as the pair are lagging behind the EURNZD, they both follow each other very closely due to the AUD and NZD moving in a close relationship.
EURAUD V EURNZD 4 Hour Charts
The EURNZD (orange) dived lower yesterday based on the RBNZ interest rate statement. We can see the EURAUD holding its price at the top of the channel formation as the pair lags behind the EURNZD. We are now anticipating the EURAUD to head lower moving in line with the EURNZD.
EURAUD – 4 Hour Charts
There has been a rising wedge breakdown at the top of a channel suggesting a bearish reversal opportunity.
Trade Setup: SELL Market Execution, current price 1.5745, stop loss 1.585 and take profit targets 1.5610-1.5550.
Stop loss: 90 pips
Take profit: 135-195