AUDUSD and EURUSD technical analysis with limit orders

The following is weekly AUDUSD and EURUSD technical analysis with limit orders for the week of October 19 to 23. See our previous week’s results and new Forex limit orders for this week after Fed rate hike.

18 December, AtoZForex – Last week the Fed have finally raised their Federal Funds Rate to 0.75%. This came without a surprise as the decision was well communicated. However, what was unexpected is that the USD rallies in the aftermath of the announcement despite having the December Fed rate hike fully priced in.

For one, the Committee was slightly more hawkish than expected. The member acknowledged that labor market has continued to strengthen and economic activity has been expanding at a moderate pace since mid-2016. The unemployment rate has declined and household spending has been rising moderately. Inflation has also increased since earlier this year, thanks to rebounded energy prices.

In addition, Fed increased the rates when the rest of central banks across the globe are still thinking how to battle domestic economic contraction. These two factors have likely resulted in continued USD appreciation.

As for our last week’s technical analysis, only two of our three Forex limit orders were triggered. The first EURUSD sell limit order from 1.0585 has unfortunately hit a SL at 1.0623. The second EURUSD buy limit order from 1.0475 hit our take profit at 1.0498. While the last EURGBP sell limit order from 0.8450 was 20 pips shy from triggering before reaching the expected TP at 0.8335.

Based on this week’s Forex technical analysis, we have the best risk/reward Forex limit orders for AUDUSD and EURUSD currency pairs.

AUDUSD technical analysis and limit orders

Looking into AUDUSD technical analysis, the underlying trend for the pair remains biased towards the downside.

AUDUSD and EURUSD technical analysis with limit orders Daily AUDUSD technical analysis with limit orders (click to zoom in)

The pair has also finished the week below a major Fibonacci 38.2% retracement level at 0.7327. Following the trend, we could look to sell AUDUSD on any rallies higher. Hence, a favourable risk/reward Forex limit order would be to sell AUDUSD from nearby resistance. And aim towards Fibonacci 23.6% retracement level at 0.7250.

EURUSD technical analysis and limit orders

Let us turn to our second technical analysis for EURUSD. Last week the pair made a new year to date low and the overall outlook for the Euro remains bearish.

AUDUSD and EURUSD technical analysis with limit orders Hourly EURUSD technical analysis with limit orders (click to zoom in)

However, EURUSD has approach a custom Fibonacci -10% retracement level at 1.040 from where a bullish correction is likely. This expectation is confirm on hourly EURUSD timeframe; the pair has formed a lower high.

Hence, we could look to buy EURUSD from current levels and aim higher toward 1.0578. Although a more favourable risk/reward EURUSD limit order would be from 1.0412.

Forex limit orders for AUDUSD and EURUSD

The following are our two Forex limit orders based on this week’s AUDUSD and EURUSD technical analysis:

AUDUSD sell limit order @ 0.7325 with SL at 0.7386 and TP at 0.7245.

EURUSD buy limit order @ 1.0412 with SL at 1.0345 and TP at 1.0578.

What is your weekly Forex technical analysis? Share your view in the comments section below.

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