EURAUD has moved higher but the help has not come from the AUDUSD. That pair is up testing the 4 month highs between 1.0447 and 1.0472 (high came in at 1.0453 today). The high was reached last hour. In the current hour bar, the price is back below the previous bar highs. The high bar has the potential to stick out as a failure but it is too early to tell. Traders – if they are intent on selling against the level – should keep the price below the high and there should be a rotation back toward the lower flatter trend line (at the 1.0400). A move below that level should solicit more selling. Key level for the pair (and it’s effect on the EURAUD as well)
Note that the EURAUD does not have to have the AUDUSD to go down for it to go up. If good news comes in the EU, there could the outperfom of the EURUSD and lagging of the already elevated AUDUSD. It would be weird because of the risk on but it could happen.
