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 .

  • Henry

    As you predicted just had pull back of sorts. Good call.

  • richard

    Hi Raul
    thank you for a really clear analysis of price action trading. I cannot fault your trade setup it looks great.
    Found your article about indicators quite challenging – I am a new trader and have been relying on MAs and MACD for confirmation of price action. I guess for me its having the confidence to let them go and focus on price action using the parameters of support and resistance. Thanks again for making the time to share your knowledge. PS I also use candle indicators – the m&s stars, doji , the engulfing and hammers and shooting stars.

    • Raul Lopez

      It’s a difficult transition, but you’ll have to do it sooner or later… Indicators are alright, but only as a confirmation or as a filter, never as an entry signal…

      Good luck Richard!

  • Henry

    Hola Raul
    Superb simplification of a potential trade. I am only just starting out on forex and wondered what the plan would be if there was no pull back.

    • Raul Lopez

      Hey Henry,

      If there was no pullback, I’d still trade it based on price action… I’d would be looking for significant upward pressure to trade it…