Short EURAUD - Fundamental and Technical Analysis

Fundamentals:

• Europe is entering the winter season and fears of a second wave is on the horizon. Cases are steadily increasing.
  
• Australia is approaching the summer season after a relatively low number of covid AND flu cases in the winter season.
  
• Brexit talks this week with a gloomy outlook. Brexit shouldn't heavily affect the Euro, but it could, and the outlook seems bearish.
  
• Australia's economy hit rock bottom last month with the government announcing a budget deficit. All else equal, the budget deficit should boost the Australian economy and thus the AUD.
  
• China's economy is showing signs of a recovery. AUD is strongly positively correlated with the CNY.
  

Conclusion:
- Bearish EUR
- Bullish AUD

Technicals:

• Price was rejected at a key supply area 1.65558
  
• Price is trading at a downtrend in the lower time frames (H1)
  
• Price is flirting with the 23.6% Fib level
  

Kommentera:

TP1 hit. Close 1/2 position. Keep SL - this is just a correction

Trade stängt: målet nått:

TP2 and TP3 hit