EURAUD potental bullish reversal 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.