The EURAUD, along with many other markets, has been sideways for months.
My guess is that markets as a whole will continue to be indecisive until after the US elections in November.
For that reason, I’ve scaled back on my trading.
But one pair I am keeping an eye on is EURAUD.
The pair’s indecision since June has carved a well defined sideways channel.
Support comes in near 1.6100 or just above with resistance at 1.6570.
What’s important here is whether you trade the channel or wait for the breakout.
While that’s entirely up to you, I will say that this channel has been in place for months, which indicates that it may not hold much longer.
If that’s the case, it may be better to wait for the breakout.
On top of that, notice the recent higher low from earlier this month.
That may be indicative of an imminent close above the 1.6570 area.
If EURAUD bulls can clear 1.6570 on a daily closing basis, it could open the door to higher prices, such as 1.7000.
That would be my target following a breakout above 1.6570.
Just remember that there are no guarantees, and breakouts do fail.
For now, though, it’s all about whether buyers can clear 1.6570 to open the door to the 1.70 region.
If they can’t, I’ll be watching for a move down to 1.6100 followed by a break below that level.