The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
The pair looks set to close above the 38.2% retracement of the January to August sell-off at A$1.4572 and is potentially going to print a bullish outside weekly reversal. I would personally only look to buy the pair on a weekly close above the October high of A$1.4706.
In this manner, I would be willing to accept a worse (higher) price on confirmation that the EUR bulls are in control. Stops could be placed at A$1.4510 (just under the 38.2% retracement of this week’s rally) for a move to A$1.50.