Time to get long EURAUD?

It’s a scary idea to stand in the way of a 7% move in less than 30 days (in the currency market!!!), but we are hitting some key extremes. The daily RSI is at levels that match 2012 and 2018 (oversold) levels. The AUDUSD pair is also testing the 200dma and a year long trend line (not pictured). The EURUSD is closing in on the 1.1000 big figure level (not pictured). Put it all together, the EURAUD may be at a level that could argue a counter trend bounce. The risk overnight may be a move below the 1.5000 level to trigger some near term sell stops, but a counter trend (very small size) long may be the play near term for a move back to the 1.5400 breakdown point.

This pair was also discussed on the “Trade Off” show that aired less than 24hours ago. Check it out!

Blake Morrow