The EUR/AUD pair has recently shown a potential bullish reversal after rebounding from the 61.8% Fibonacci retracement level. This presents an opportunity to capitalize on the formation of potential double waves 1-2.
Technical Analysis:
- Current Structure: The pair is displaying a potential double wave pattern following a recent rebound from the 61.8% Fibonacci level. The price action indicates that it is viable to enter a trade at the current level, although a more conservative approach would be to wait for the price to break the top of wave 1 at 1.64063.
- Institutional Levels: Observing the institutional volume at critical levels will provide confirmation for entering the trade. It is essential to monitor for increased buying activity as the price approaches and surpasses 1.64063.
- Aggressive Entry Point: Entering now with a stop loss below the 61.8% Fibonacci level.
- Conservative Entry Point: Use a buy stop order at 1.64063, confirmed by a surge in institutional volume.
Take Profit Targets:
1.67 , 1.69, 1.71
Fundamental Analysis:
- Eurozone Data: The Producer Price Index (PPI) for the Eurozone increased by 1.4% monthly and 10.3% annually in June, indicating rising inflationary pressures which could influence the ECB's monetary policy decisions.
- Australian Data: Recent economic indicators from Australia have been mixed. Building approvals fell by 6.7% in June, suggesting a slowdown in the construction sector, while the Reserve Bank of Australia (RBA) maintained interest rates at 0.10%, signaling a cautious economic outlook. This juxtaposition of strong Eurozone data and weaker Australian metrics supports a bullish view on the EUR/AUD pair.
Technical Analysis:
- Current Structure: The pair is displaying a potential double wave pattern following a recent rebound from the 61.8% Fibonacci level. The price action indicates that it is viable to enter a trade at the current level, although a more conservative approach would be to wait for the price to break the top of wave 1 at 1.64063.
- Institutional Levels: Observing the institutional volume at critical levels will provide confirmation for entering the trade. It is essential to monitor for increased buying activity as the price approaches and surpasses 1.64063.
- Aggressive Entry Point: Entering now with a stop loss below the 61.8% Fibonacci level.
- Conservative Entry Point: Use a buy stop order at 1.64063, confirmed by a surge in institutional volume.
Take Profit Targets:
1.67 , 1.69, 1.71
Fundamental Analysis:
- Eurozone Data: The Producer Price Index (PPI) for the Eurozone increased by 1.4% monthly and 10.3% annually in June, indicating rising inflationary pressures which could influence the ECB's monetary policy decisions.
- Australian Data: Recent economic indicators from Australia have been mixed. Building approvals fell by 6.7% in June, suggesting a slowdown in the construction sector, while the Reserve Bank of Australia (RBA) maintained interest rates at 0.10%, signaling a cautious economic outlook. This juxtaposition of strong Eurozone data and weaker Australian metrics supports a bullish view on the EUR/AUD pair.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.