EURAUD Rolled over to Target 1

EURAUD, Daily              

Yesterday I wrote “The EURAUD rallied strongly from the August low below 1.4450 to a high at 1.5065 last Thursday (September 14). The high was capped for three days by the 200 DMA, and the subsequent fall broke the 20 DMA yesterday. This three candle down move and break and hold of the 20 DMA on the Daily timeframe, triggered a SHORT position at 1.4820, with Target 1 at 1.4700 and Target 2 at 1.4580.

The strong down move continued yesterday. Target 1 at the psychological 1.4700, and the 50 DMA were breached earlier today for a gain of 120 pips.  If the pair close today below the 1.4700 level and the Parabolic SAR remains positive then further downside to Target 2 (1.4580) is possible.  Today would be the 5th strong down day following the rejection of the 200 DMA on September 15, so some relief in the down move could be expected, the short term stochastics are over sold.


Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar “An Introduction to Elliot Wave Theory” will start in: 

Stuart Cowell

Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.