EurAud. Looking to sell into strength. Short term rally possible

18 de mai. de 2014

EURAUD: 1.4630. The cross has bounced well off last week’s 1.4563 low and the bullish divergence on the daily charts suggests now that we could have a bit more upside progress ahead of us, possibly reaching the 200 DMA/Descending trend resistance at 1.4865, although this seems a bit of a stretch at this point. Interim resistance levels will be seen at around 1.4700/15 and then again at 1.4800. Should we see a decent rally, I would consider it as a probable sell opportunity for an eventual return to the downside as the SHS formation comes back into play, where the eventual target is around 1.4100. Below last week’s low, the next interim target would be at around 1.4450/70, where a couple of Fibo levels appear, although I don’t think we are ready for that yet. Short term Buy/Medium term Sell.