My week 46 Sunday analysis above clearly shows that as of 8pm GMT on Sunday 12th November 2017:
- AUD is the 3rd weakest currency in the market.
- My previous Week 45 Sunday analysis showed EUR as the 3rd Strongest so I was already watching this currency
- Add to which, EUR was showing on my previous weeks Intraday Analysis (Mon to Fri) as the strongest currency
- Put the above together and you can see why I was interested in this currency cross.
Let’s pull up the EUR/AUD chart and see what it has to offer.
Start of week 46 – chart and written trade rational:
Rational: EUR/AUD Long
I will simply reiterate most of what I had to say last week:
Here we have a fascinating chart to play with. One of the best examples of a near 9 month ascending triangle I have seen in quite sometime – a near perfect rising trend line in play since late February capped by multiple tests of resistance at the 1.5230 handle and a fakeout (false breakout) to boot.
I see such a pattern as showing upside potential, and this is born out by the ascending triangle pattern being widely seen as a continuation pattern, effectively building pressure toward the upside. Lets face it, this pattern cannot stay in play for much longer, something has to give.
I’m widely know for stating the obvious in that price can only go in one of three directions; Up, Down or Sideways. In this case price has to either move to the upside breaching resistance, to the downside breaching rising trend line support, or sideways, again breaching rising trend line support to establish a trading range.
NB: Last week we saw price again test rising trend support and Friday’s bull bar was good and strong, however last weeks RBA rate statement did little to drive this pair in either direction so we again wait and watch price test it’s 1.5230 resistance level.
End of week 46 – chart and trade outcome:
Outcome: EUR/AUD Long
The market opened @ 1.5222 and closed 373 pips higher @ 1.5575 – I entered long on Sunday’s market open, exiting just before Friday’s market close.
It had to give, and it did ! Our best performer of the week giving us a stonking + 361 pips of profit !