EURAUD Lower

Trying EURAUD lower.

We have a potential double top forming from way back.

I think the narrative is changing in favour of AUD. The RBA minutes were more hawkish than people were expecting and the next meeting is live for a potential hike depending on future data. China data has been good and i'm expecting AUD data to be good on the back of this and a relatively decent AUD economy currently. The EUR narrative has lost a little bit of steam and i think global yields overall will struggle to move too much higher, which should limit EUR upside for the pair. I think as we get further into the year the better the AUD narrative will become as china slowly reopens.

correlations are a little mixed, rate differentials are a little neutral here while copper, risk and the VIX are all suggesting lower - although the pair has had trouble following this i believe because of the rising yields, which i expect will slow down.

Sentiment and positioning for the pair is extremely high which should help.

Not trading/investment advise, feedback welcome!