Ticker tape by TradingView

EUR/AUD Deep Dive: What's Stronger?

Over the past couple of months, price formed an ascending triangle pattern, which we saw the initial breakout in the middle of May. Ever since, we had price consolidate between the chart pattern's resistance and the breakout's high at 1.566 - 1.585. We saw this move continue for over a month.

Recently, in early July, we did see price make a huge rejection to the old 1.566 resistance level, new support level, and price ended up breaking above the recent high at 1.585.

In the short-term, we can see price has formed an ascending channel as it's heading higher from the long-term break of the ascending triangle pattern. Currently, price must go below the previous higher high at 1.596 to make a touch and rejection off the channel's bottom, to continue the trend's formation.

Later today, the European Central Bank (ECB) will publish its monetary policy decision for July. As parts of the Eurozone experienced flooding and the Delta variant limited the momentum of economic recovery, its like the ECB President will continue to look at the foreseeable future before making hard decisions. This won't be all negative though, as increased vaccinations and restriction easing will continue to the Euro's economic activity.

The Australian Dollar on the other hand, continues to battle with rising coronavirus cases and the possibilities of more lockdowns in cities.

For this reason, unless the ECB turns out more dovish than expected, we'll likely see E/A head higher and continue the trend. I'm looking out for a touch and rejection of the channel's bottom for this.

Looking at retail sentiment, E/A traders are actually quite mixed on this market, as there isn't a clear one-sided bias yet. Sentiment is mixed and traders are essentially waiting on the next confirmation before we see a one-sided market.

Over the next couple of weeks, we're got a few high and mid-impact news events coming out, more so for the Euro. The Euro essentially has a chance to out-perform the AUD, and depending on the outcome of these events, and the state of their economy, we could see the Euro gain strength and continue heading higher in EURXXX markets, such as E/A that we're looking at.

Want to see our trades?

Join our VIP!

Our entries, exits, & analysis
Live webinar coaching calls
Trading chatrooms
Strategy library
Use Code "READER" for $5 OFF!
Join Now
Forex Market Recap (18-23 July 2021)

With markets beginning to a volatile start on Covid fears, by the end of the week markets seemed to calm down to a steady recovery. The CAD performed the best rising in recovery in risk, but also on rising oil prices. The Euro had the most notable event of the week due to the monetary […]

Read More
Up 1500 Pips! How We Caught A Big Mover

7/23/2021 This week, me and Nick caught a crazy move on the SPX500 that we are currently still in at the time of writing this. This one move has netted us around 1,500 pips in equity. We haven't closed, so this number will not be the same when the trade is over, but this article […]

Read More
The Truth about Growing a Small Account

Is it possible to flip an account in a short period of time? Yes, It is theoretically possible. Is it likely? Not really.Unfortunately, flipping a small amount of money in a short period is risky and usually won't go your way. While still possible, this method of trading is more like gambling than trading. Let's pretend you […]

Read More
Bitcoin Jumps On Musk Announcement- How To Trade This News

7/22/2021 The past couple months haven't been too good for the crypto market, in fact, the market saw a $90 billion loss since May. If you have kept up with the activity on Elon Musk's account, you might have seen how the majority of his tweets about dogecoin or bitcoin have greatly influenced the price […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here

A1 Trading Company

A1 Trading Company is a financial services and media business founded in Atlanta, USA.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram