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Day three: our potential EUR/AUD trade

On the daily chart EUR/AUD seems fairly oversold and due a modest upside move, although I expect traders to sell into this. 

Euro
Source:Bloomberg

Following on from my potential trade idea yesterday, as you can see from the hourly chart the pair could gravitate to the downtrend resistance at 1.4511, although this should cap the move.

Perhaps today’s Australian jobs report could be the catalyst for a rally; while the market expects 10,000 jobs to be created in May, a weak number shouldn’t affect the RBA’s view on rate hikes.

I continue to hold shorts ahead of the Australian employment data.

EUR/NZD has responded aggressively to today’s RBNZ statement, and while I was expecting to see further downside in the pair, the RBNZ has arguably gone above and beyond market expectations. 

EUR/AUD
IG Charts

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