An update on EUR/AUD and GBP/CHF short strategy as mentioned in our weekly report.
As noted in the report, we planned to buy EUR/AUD on dip to 1.5800, slightly below 38.2% retracement of 1.5601 to 1.5945 at 1.5814, in anticipate to rise to 100% projection of 1.5271 to 1.5886 from 1.5601 at 1.6216. The pull back was contained at 1.5829, above our entry. Thus, the order was not filled. Given that the rise resumption happened already and EUR/AUD has met 61.8% projection, we’ll cancel the order and look for other opportunities.
As noted in another update, we’re holding on to GBP/CHF short, sold at 1.2971, stop at 1.2725. Target is 1.2500. But the downside momentum of the move from 1.2722 has been rather unconvincing. More importantly, we see that EUR/GBP retreats quite steeply after touching channel resistance. And, USD/CHF is close to 0.9724 key fibonacci level. There is material possibility for GBP/CHF to rebound ahead of 1.2500.
Therefore, we’ll exit out short position at market (1.2587), and pocket 384 pips profits first.
