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Forex Trading: EUR/AUD Trendline and Fiboncci Level in Play Again

By , Sr. Technical Strategist
09 January 2013 18:43 GMT

As mentioned this morning, I’m currently flat but my interest remains piqued in the EURAUD.

Euro / Australian Dollar

Daily Bars

Forex_Trading_EURAUD_Trendline_and_Fiboncci_Level_in_Play_Again__body_euraud.png, Forex Trading: EUR/AUD Trendline and Fiboncci Level in Play Again

Prepared by Jamie Saettele, CMT

FOREXAnalysis: The EURAUD has dipped below the 61.8% retracement of the rally from 12158 and the trendline that extends off of the November and December lows. So far, the dip is confined to intraday action. An intraday break of support and daily close above is actually more desirable from a bullish standpoint. If the bull move materializes, then those that sold on the false break (at terrible prices) will propel the move higher with their covering at higher levels. Daily RSI is also at support (from a former RSI low and the 40 level).

FOREX Trading Strategy: I’ll turn bullish IF price trades through 12460. 12550 and 12650 would be near term objectives. It is possible that a major bullish base is forming. A break above the December high is needed in order to suggest a longer term bull move is underway (see below chart).

Euro / Australian Dollar

Weekly Bars

Forex_Trading_EURAUD_Trendline_and_Fiboncci_Level_in_Play_Again__body_euraud_1.png, Forex Trading: EUR/AUD Trendline and Fiboncci Level in Play Again

Prepared by Jamie Saettele, CMT

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

To contact Jamie e-mail jsaettele@dailyfx.com. Follow me on Twitter for real time updates @JamieSaettele

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Jamie is the author of Sentiment in the Forex Market.

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09 January 2013 18:43 GMT