Clear Momentum And Technicals May Provide A Short-Term EURAUD Range Opportunity

Liquidity is thinning out and risk trends are on the cusp of a major shift – meaning the conditions are not favorable for range trades. However, there are a few high-risk setups that may actually benefit through a period of chop and turbulence with help of strong technicals and offsetting fundamentals.

Why Would EURAUD Stay in a Range?

· Levels to Watch:

-Range Top: 2.0500 (Trend, Swing High)

-Range Bottom: 1.9700 (Trend, Fibs, Pivot)

· There are three competing fundamental forces behind EURAUD. The most immediate threat to volatility is the low-liquidity expected for the North American session over the remainder of this week – which could leverage swings in price action. More consistent are the unpredictable tides of risk sentiment which has endowed EURAUD with volatility but not direction. Finally, there is the presence of significant event risk from both sides.

read more...

http://biz.yahoo.com/fxcm/081126/1227725692401.html?.v=1