Long EURAUD, NZDUSD Long Stopped Out
I still like being short US Dollar, but recent SSI readings suggest the next big Dollar moves may need to wait until April. I got stopped out of my NZDUSD long position as it took out week-to-date lows. I think the idea was right, but the timing was clearly off as the Dollar seems only willing to consolidate in a very wide range across the board.
I remain long EURAUD as a way to avoid the dollar and take advantage of what I view as a bullish Euro setup versus a bearish Aussie trend. I bought on a break of highs at A$1.2711, and feel good about the trade as it breaks above previous YTD peaks of A$1.2755.
I'll move my stop on the EURAUD long to just below congestion support at A$1.2800.
--- Written by David Rodríguez, Quantitative Strategist for DailyFX.com
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