No prizes for guessing the driver of EUR weakness as we enter the new trading week .
The failure and collapse of coalition talks in Germany could force anther election and place EUR under pressure near term.
EURAUD grabbed my attention on Friday. A level I had on my chart radar was hit and a short position opened. We hit a double combo of fib extensions and price reversed (much to my delight) as if on cue. A double whammy of the Feb-May low to high coupled with the more recent July-Sept low – high has so far nailed the top from Friday .
As with all cross trades there is always two sides to the story. My feeling is that direction in EURAUD in the coming days could be more focused on EUR weakness/uncertainty than AUD strength. – Happy to be a rally seller from here until price proves otherwise .
A closer look a the H1 chart below shows an area around 1.5485 which will be crucial in the short term for any down move to really take hold .
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