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Gold affects positively EURAUD

Market Analysis

EURAUD, H1 & Daily

The losses in Japan and Australia were relatively modest, while Hong Kong stocks under-performed and are heading for the biggest lost since last year amid concerns about the tensions between the U.S, and North Korea. U.K. stock futures are actually slightly higher, while U.S. futures remain in the red. Risk aversion remained in play despite U.S. Secretary of State Tillerson’s reassurances. However, geopolitical tension boosted also gold which has been seen today at $1281.00 high. The boost on Gold has also affected sightly within the day some Aussie crosses such as EURAUD, since Australia can be consider as one of the largest gold producer. Hence by observing EURAUD some shorter and longer time-frame positions were taken.

In the 30-Minutes chart,  a retracement was identify with pair moving higher after today’s low at 1.4845. Meanwhile in the hourly chart, pair moves within the down Bollinger Bands pattern and above the 200-period  EMA, which was hit earlier. By consider also that the pair forms higher low fractals, while the 250-period EMA can be consider as a good support level in the hourly chart, a Long Position was taken with an entry at 1.4867. Intra-day targets were set at 1.4885 and 1.4900  and support at 250-period EMA , i.e. at 1.4840.

However in larger time-frames such as H4 and Daily a LONG positions was also taken with Target  at 1.4940 and support at  1.4790 ,  which is the confluence of  50-Days EMA and also close to 200-period EMA in the 4-hour chart. This position was based on the fact that pair did not manage to break the 50-Day SMA for the last 6 Days, while it is in an uptrend since July 28. The RSI in neutral in the Daily chart.

 

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Andria Pichidi

Market Analyst

HotForex

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