EURAUD Opens Above Ichimoku
EURAUD Opens Above Ichimoku | Technical Analysis
We have three bullish signals down and waiting for a confirmation people! After confirming a Head and Shoulder chart pattern, breaking above the 38% Fibonacci level and forming a Bullish Engulfing Candlestick formation, EURAUD opens above Ichimoku cloud on Wednesday to give us yet another upside indication.
However the downside to this is the pair’s sentiment shifted to bearish on the Sydney session‘s market open. Still, since the EUR/AUD pair seems to be on a long-term rang between 1.56 and 1.4460, we could very well see this pattern to continue this time around.
With that, our bullish targets are set at 1.5160 (61% Fibonacci) and 1.5340 (78% Fibonacci)
Support levels are at 1.4720 and 1.4460 in extension.
Fundamentals – EURAUD Opens Above Ichimoku
The massive Tuesday uptick was despite the fact that both German and Euro zone ZEW Survey of Economic Sentiment for September printed lower than expected figures. It did help though that the EU survey results came in better than last month.
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- EUR Euro-Zone Industrial Production – Wednesday at 9 AM GMT
- Australia’s Jobs Report – Wednesday at 1:30 AM GMT
- Euro-Zone Consumer Price Index – Wednesday at 9 AM GMT
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Trading Strategy – EURAUD Opens Above Ichimoku
Bullish Scenario: As EURAUD opens above Ichimoku cloud, we now have locked in the 4th bullish signal for the pair within its longer term range. With that, depending on your risk appetite and risk tolerance you can target either of the resisting Fibonacci levels at 1.5160 and 1.5340.
Bearish Scenario: If the EURAUD pair suddenly decides to go nuts (on better-than-expected news from the land down under, or worse than expected data from EU), and breaks below both pivot levels and the Ichimoku cloud, our outlook will shift to bearish.
NOTE: Set your stop loss based on your risk tolerance on one of the supporting Fibonacci levels
More on Economic Calendar
London Session: During the London session we first have UK’s Jobs figure at 8:30 AM GMT. This jobs release can be tricky to trade since it has three main components: the claimant count, the average earnings index, and the unemployment rate. An increase of 1.7K in the number of claimants is expected for August, signaling a drop in hiring for the month, while the average earnings index for the three-month period ending in July could slide from 2.4% to 2.1%. The unemployment rate is expected to hold steady at 4.9%.
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Next Day’s Asian Session: We are expecting New Zealand’s Gross Domestic Product to be out during the next day’s Sydney session at 10:45 PM GMT.
Here are Invest Diva’s calculations for important EUR/AUD approximate levels to keep an eye on:
|Support Levels||Turning Point||Resistance Levels|