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9 Sep 2013
EUR/AUD enters week deeply oversold and approaching Fibo support at 1.4197
FXstreet.com (Barcelona) - A convergence of euro weakness and Aussie Dollar strength has occurred to press the EUR/AUD lower. Support is not far off, though, and oversold readings may lead to some buying soon.
EUR/AUD – fight the trend or ride the trend?
Every trader loves that sensation of making an accurate top or bottom call, but how many incorrect calls do they have to go through while fighting the existing trend to get to the one where they are finally correct? Usually more than they care to admit to. With the EUR/AUD, we have a situation where bottom-calling after a couple of weeks of selling might be very enticing for those who like to “fade” trends.
This week, there will be multiple data points from Europe and Australia where bullish European or bearish Aussie data might force a change in direction.
Technical outlook for EUR/AUD
Based on Elliott Wave count and Fibonacci projections, technicians are calling for short-term support to come in at or around 1.4197. They are expecting a modest bounce off of that support – only to lead to even more downside. A bounce off of support could take EUR/AUD up to 1.4500 – but they say that such a bounce should be sold into.
EUR/AUD – fight the trend or ride the trend?
Every trader loves that sensation of making an accurate top or bottom call, but how many incorrect calls do they have to go through while fighting the existing trend to get to the one where they are finally correct? Usually more than they care to admit to. With the EUR/AUD, we have a situation where bottom-calling after a couple of weeks of selling might be very enticing for those who like to “fade” trends.
This week, there will be multiple data points from Europe and Australia where bullish European or bearish Aussie data might force a change in direction.
Technical outlook for EUR/AUD
Based on Elliott Wave count and Fibonacci projections, technicians are calling for short-term support to come in at or around 1.4197. They are expecting a modest bounce off of that support – only to lead to even more downside. A bounce off of support could take EUR/AUD up to 1.4500 – but they say that such a bounce should be sold into.