Long EURAUD against the Low
I remain long EURAUD from 1.2535 from yesterday, and right now the position is sucking wind. My trade was based on a significant sentiment shift as seen through the SSI, and our DailyFX PLUS 'Tidal Shift' strategy went long. The position on DailyFX PLUS has since been stopped out, but I remain bullish as long as we remain above Sunday's low of 1.2398.
I feel less confident in this trade as the S&P 500 takes out fresh highs. It's entirely possible that my change in stance towards selling AUD was premature as stocks are proving resilient. That said, we'll know relatively soon if the EURAUD is in fact headed for fresh lows. 1.2398 remains the line in the sand for me.
--- Written by David Rodríguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.