Short EURAUD - Fundamental and Technical Analysis
Updated
Fundamentals:
Conclusion:
- Bearish EUR
- Bullish AUD
Technicals:
- Europe is entering the winter season and fears of a second wave is on the horizon. Cases are steadily increasing.
- Australia is approaching the summer season after a relatively low number of covid AND flu cases in the winter season.
- Brexit talks this week with a gloomy outlook. Brexit shouldn't heavily affect the Euro, but it could, and the outlook seems bearish.
- Australia's economy hit rock bottom last month with the government announcing a budget deficit. All else equal, the budget deficit should boost the Australian economy and thus the AUD.
- China's economy is showing signs of a recovery. AUD is strongly positively correlated with the CNY.
Conclusion:
- Bearish EUR
- Bullish AUD
Technicals:
- Price was rejected at a key supply area 1.65558
- Price is trading at a downtrend in the lower time frames (H1)
- Price is flirting with the 23.6% Fib level
Note
TP1 hit. Close 1/2 position. Keep SL - this is just a correctionTrade closed: target reached
TP2 and TP3 hit
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