EUR/AUD Technical Analysis
- Zoned Pin bar rejection
- NFP low is taken out
- Bearish trend
- M L3 is the target
MEGATREND MAs: Bearish
D1 Chart EUR/AUD
- Trend line start
- The top of the move
- Zoned rejection
- Target
The EUR/AUD is having a zoned bearish rejection. Zoned bearish rejection means that the entry signal pattern happened exactly within the borders of the MEGATREND moving averages and the break below is a signal to enter a short. In this it is the NFP low that has been taken out. Targets for this move are 1.4619 and 1.4380.
The Reserve Bank of Australia raised interest rates by 50bp on Aug 2. In the RBA statement, Governor Lowe hinted at further rate hikes to come. Also, Lowe added that the RBA would do whatever is necessary to reduce inflation back to target in a due time. With the RBA projection inflation will be around 7.75% over 2022 and the Bank’s inflation target between 2% and 3%, this is a hint for more rate hikes to come.
This analysis, and all entry signals and targets are a part of the Megatrend trading course. I have 1 short position that I will maintain until intraday target and possible swing.The intraday target is 1.4619 while the intraweek target is similar to swing target. Swing target is 1.4380. Position management is very important once you are in a trade.
Summary of July trading results is on this PAGE
Cheers and safe trading,
Nenad
Cheers and safe trading,
Nenad
