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.

EUR
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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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.