Intraday Strategies: Euro Aussie and Dollar Yen

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EURAUD Intraday Strategy

Euro Aussie has attracted our attention for some time in the 4hr chart. The cross has painted a bullish flag, providing several opportunities when the price is re-testing the upper resistance and support level of the flag.

EURAUD 4hr Chart

Please click on the chart to enlarge:

EURAUD 4hr Chart 12/09/15

EURAUD 4hr Chart 12/09/15

If the price is able to affirm the flag by breaking above the resistance this could very well initiate a medium-term uptrend in EURUAUD as the target (based on the flag pole) exceeds +800 pips. Such a breakout would require monitoring and the long upper shadow of 24 August 2015 toughens the analysis. By the book the price must break above the high (1.6584) in order to sustain the uptrend. Rather than anticipating such a breakout, a break above the resistance (in purple) may yield to further gains towards 1.6540. If EURAUD manages to break above 1.6584 the charts must be analysed to ensure a clean entry is provided. A breakout may not be imminent, which is why focusing on the support/resistance level will be the first approach to the market.

One of the fundamental events that may lead to a weak Australian Dollar (AUD) rather than a strong Euro  (EUR) is a rate cut by the Reserve Bank of Australia (RBA) or further economic slowdown from China.

USDJPY Scalping Strategy

Although some forex traders may consider the 15min chart unsuitable for scalping the structure of analysis may also be adopted on the 5min chart. We are less fond of the 5min chart as we believe many false signals from the chart regardless of the strategy that is used.

USDJPY 15min Chart

Please click on the chart to enlarge:

USDJPY 15min Chart 12/09/15

USDJPY 15min Chart 12/09/15

USDJPY is trading in a beach channel within a bearish channel. Scalpers are likely to aim for re-tests of the upper resistance level (in pink), targeting between 7 – 14 pips per trade. Re-tests of the support level will be a more difficult task but we believe the 120.42 may hold only on the first test. If the market takes out 120.42 the immediate attention will be placed on the lower support level (in black), which is expected to hold.

Breakout strategies may be exercised upon a firm break above the upper resistance (in pink) that would pave the way for stronger gains towards 120.89. A break below the lower support line (in black) would may catalyse the selling towards the latter support level (in purple) where dip-buying strategies may be employed.

This strategy may be more appropriate for the Asian session as the Industrial Production data from China is due in the early hours of Monday morning (GMT), which is also expected to have an impact on EURAUD. We do not expect a breakout to take place in Euro Aussie following the economic data from China unless the People’s Bank of China (PBOC) take action. We have noticed the PBOC set a lower value for CNY in one of the fixes at the past week, which highlights the risk of further ‘surprises’ from the PBOC in September 2015.

22/09/15 UPDATE: Although we did not discuss a bearish breakout we have marked the target in such a scenario (1.5600). Rather than painting a bullish breakout Euro Aussie broke below the lower support line.

Please click on the chart to enlarge:

EURAUD 4hr Chart 22/09/15

EURAUD 4hr Chart 22/09/15

22/09/15 UPDATE II: USDJPY breakout strategy played well but missed our target by +6 pips (approx.).

Please click on the chart to enlarge:

USDJPY 15min Chart 22/09/15

USDJPY 15min Chart 22/09/15

Intraday Strategies: Euro Aussie and Dollar Yen

As EURAUD and USDJPY strategies are no longer applicable this page can  now be accessed by all traders. Relevant strategies are restricted to members only. We have been providing trade alerts in the Forex market since May 2014.
Intraday Strategies: Euro Aussie and Dollar Yen

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Intraday Strategies: Euro Aussie and Dollar Yen

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Intraday Strategies: Euro Aussie and Dollar Yen

Last Updated on September 22, 2015