XAU Trading Outlook
Yesterday’s short trade in EUR/AUD worked very nicely and I would try the same again today. Look to sell rallies back towards 1.4900/10. The NZD looks to be an even better buy that the AUD and NZD/JPY might also be worth a look; it’s risky given the vertical nature of yesterday’s move so keep trailing stops tight if going long.
As usual I’m looking for contrarian plays and I like the risk-reward being offered by EUR/AUD. The single currency is showing signs of weakness against the GBP and is stalling at technical resistance against the USD. With the AUD looking oversold, selling EUR/AUD rallies with stops cleanly above 1.5050 makes sense.
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