Gold affects positively EURAUD

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EURAUD

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 slightly within the day some Aussie crosses such as EURAUD, since Australia can be considered as one of the largest gold producers. Hence by observing EURAUD some shorter and longer time-frame positions were taken.

In the 30-Minutes chart, a retracement was identified 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 considered 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 position 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.

VIAAndria Pichidi, HotForex
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Andria Pichidi is a Market Analyst at HotForex. She has been awarded a BSc in Mathematics and Physics from the University of Bath and an MSc degree in Mathematics, while she holds a postgraduate diploma (PGdip) in Actuarial Science from the University of Leicester.