Recent inflation forecasts suggest Euro inflation is decreasing whilst Australia is increasing, this would suggest upward pressure on this pair.
RSI has made a recent bullish divergence signal, indicating selling of the Euro is weakening. RIS has made a new technical uptrend whilst the price has made a technical downtrend, making this signal strong. This event has also occurred at an area of previous major support.
Could this be institutions rebalancing their portfolio's in anticipation of the Euro strengthening?
Even though price is currently in a downtrend on this pair, the above factors could be a catalyst for a reversal to the upside, and I am bullish for this reason.
I would wait for a pullback to a fib level before entering long, in order to gain a good entry price.
Exit this trade when the uptrend shows signs of weakening.
Risk/reward on this idea is good.
RSI has made a recent bullish divergence signal, indicating selling of the Euro is weakening. RIS has made a new technical uptrend whilst the price has made a technical downtrend, making this signal strong. This event has also occurred at an area of previous major support.
Could this be institutions rebalancing their portfolio's in anticipation of the Euro strengthening?
Even though price is currently in a downtrend on this pair, the above factors could be a catalyst for a reversal to the upside, and I am bullish for this reason.
I would wait for a pullback to a fib level before entering long, in order to gain a good entry price.
Exit this trade when the uptrend shows signs of weakening.
Risk/reward on this idea is good.