750 pips to go

euraud flagHave you found the clearest currency pairs to trade this week?

I’m curious about the pairs that you are currently following, please let me know in the comment section.

One of the currency pairs that I’m currently following is the EURAUD…

It is definitely one of the pairs that has the clearest support and resistance level and market swings, making it relatively simple to look for trade opportunities.

And what I like the most about the EURUAD is that it still got 750 pips to go before we hit the next LT resistance level.

Does it mean that I’m going to look for 750 pips?

Of course not. What I’m saying is that we’ve got plenty of room to look for our entry… more on this in a minute (although it would be a good idea to trade it as soon as possible to get more pips :)

Long term analysis

EURAUD Weekly chart analysis

You see what I’m talking about?

Once the market breaks through an important level, it is likely to continue in the direction of the breakout until it reaches the next level.

In this case, the next level is around 1.4000… Right now we are trading at 1.3240, so we got 750 pips before we hit that level… which gives us plenty of room to look for our entry.

Short term analysis

Here is the hourly chart:

EURAUD Hourly Chart Analysis

Right now I favor a pullback to the support level around 1.3200 (which by the way is a round number, and most of the time those century numbers are psychological levels).

We’ll see if I get what I’m looking for.

Now, you got to remember that this trading plan is true only if it keeps trading above 1.3200. If it breaks below this level I’ll have to reassess my plan.

Your Turn

Does it look like a good plan to you?

What other currency pairs are you monitoring?

Let me know in the comment section.

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .