Hi you all:-)
€/AUD is sky rocketing. +375 pips move at the time of writing since 21/11/13 (last 2 days) . I have entered long @ 1.4200 and target is 1.4950-1.5000 range. The recent ECB rate cut and AUD 10% over valued statement from IMF + RBA statement of currency intervention to depreciate the value + Fed tapering in near future factors drive the Aussie under fire of more selling pressure. There is still +250 move is expected to meet next resistance at 1.5000 range. If any one interested jump in from any possible pull back and enjoy the rally.
Risk is on your own and my statement above is just for your information purpose only. I wish you good luck.
I am actually still inexperienced with regard to this particular “synthetic” currency pair, and I entered SHORT with a small size (10k) and wide stops… Currently in the red by -430 pips and still puzzled by this retracement. It is one of those situations where I truly have no idea what to believe… Sadly the EUR/GBP and EUR/USD are no use here, because while these were busy coming down fast, the EUR/AUD pair was busy breaking through former channel top/resistance like a rocket. Had I been on the right side of this analysis, I would have been much happier… Too bad.
I am no longer able to be objective about this, because the retracement to the 1.5000 level is looking likely, but my heart looks at the daily chart RSI, which screams overbought, and I think that it is a bubble over a few words from Gov. Stevens and the IMF… The IMF statements have been down-played in other occasions, so market sentiment on over-valued AUD strength must be at play here… It does not matter what I think, it is/was a bad trade for me to enter. Let us see what happens next week. PS - The Rollover rate is quite large on this trade, on a short! I was banking on carry…
Good luck to you, Victory Traders! Go for it!
Happy Trading.
Hello Sir,
Thank you very much for your response. Well the fundamental situation on EU has more impact on this pair as well. Economic growth is in favour with rate cut and minus deposit rate for euro also support bullish momentum. Indeed RSI at overbought situation. I would prefer pull back to add some positions to my existing trade before it’s hit my target. In the bigger picture euro is still weak and there is more risk on downside. So your trade will be validated in a longer run if you can hold your positions with this high volatility. Why don’t you hedge your trade with 20K and close your current position with good exit point on the pull back. So you can cover your lose at least. But it was just my view. If I were you I do like that.
Anyway I wish you good luck too.
Hello, again…
While other Euro pairs are in decline, this pair has continued its phenomenal rise (six hundred pips, and counting) toward that 1.5000 level; we will have to see whether what spark will make it come crashing back to Earth, bouncing off this important Fib.+Resistance level…
Hello sir.
Thank you very much for your information. Well I’m also very cautious at this stage. My trade still need 30+ move to hit my target @ 1.5000 range. But there could be a reversal soon. But no sign of it at this stage. Aussie depreciation is still on play. So weekly chart looks like the bigger bull trend is back on control if it is break 1.5050 range break through. I would personally prefer a pull back to 1.4700 range and below. Are you still short with your trade? If so may be you prefer to short another position at this stage. I’m also looking forward to short if 1.5035 range holds.
We will wait and see. Fingers crossed.
Hello,
Today 800 pips profit has been booked @ 1.5000. Hope some of you made money on this trade. My above post is not more valid. I wish you all very good trading day.