I remain short the Australian Dollar against the US Dollar, but I'm looking to buy this EURUSD dip as I don't think the currency pair trades below its 200-day Simple Moving Average.
I first went short AUDUSD from two weeks ago from the $1.0430 mark and have trailed my stop to above the $1.0270 mark.
With the EURUSD position I like going against the most recent decline. As per my forex strategy outlook this week , I think the EURUSD looks most attractive as a range trade. RSI remains heavily oversold on intraday charts, and that's good signal in my opinion.
I like a EURUSD long position as long as it remains above its late September low and 200-day SMA at $1.2800. Profit targets start at intraday reaction highs of 1.2960 and the $1.3000 mark. A minimum 1:1 reward to risk implies that the position remains valid at $1.2880 or lower.
I remain long USDJPY though I can't say I fully recommend joining me here: the pair seems incapable of holding gains. That said, USDJPY position remains in force as long as the pair trades above ¥76. Profit targets start at ¥80 on the USDJPY.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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