EUR/AUD, GBP/AUD set to reverse?
Two separate technicians, who are usually very insightful, are telling me that these two crosses are heavily overbought on a short-to-medium time-frame. Of course they have a captive audience knowing that I’m long AUD/USD!
Looking at EUR/AUD, there is a top in place at 1.4450/75 but it’s Friday and we are not that far away from there. I don’t like the idea of selling here at 1.4375; best to wait and see if we get another topside test to take out likely stops above 1.4480 and then sell into that spike near 1.4500/25?
I’d take a similar approach to GBP/AUD; resistance levels are further away there at 1.6900 making sales at present levels near 1.6700 much less attractive. Wait for any stop-loss driven spikes up through resistance levels and sell into that for a move back below 1.65.