EUR/AUD trade idea

The weekly chart of EUR/AUD looks bullish, with stochastic momentum moving higher and the MACD also trending upwards, although still below the zero level.

Source: Bloomberg

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.

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