Take a look at this chart… looks good for shorts
This week is going to be easy regarding fundamental announcements, we don’t have as many as we did last week, which is good, and this way the market is driven by its sentiment (not by fundamentally driven movements).
Now, one of the currency pairs I’ve been monitoring in the last weeks is the EURAUD. If I show you the daily chart you would instantly recognize that it is in a bearish condition.
Now let me know you the short term charts:
One of the things that I look for in a chart before taking any trades is clear support and resistance levels, this way I know where to open my trades.
In the EURAUD it’s clear that it is trading just below that level, if it gets rejected, it will be a candidate to look for short opportunities.
Some traders avoid trading some of the crosses because of the spread.
But I rather take a trade in a currency pairs with larger spread with a clearer market condition, than in a pair with a smaller spread with not a clear market condition.
What’s your take?