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EUR / AUD – Still Selling Off?
By Eliseo Agas | October 24, 2007
Could there be slowing in the selling momentum for EUR/AUD? Check out the Daily chart and look at the support the pair ran into.
The area roughly between 1.5750 and 1.5650 is a cluster of congestion and naturally acting as support. The price action ran into it and bounced upwards (at the time of this posting). Think about the battle between buyers/sellers in this area that caused that cluster of price action to develop. Now I’m not saying that going long is a sure thing but it definitely seems worth a shot to me.
I’d throw on a small probing trade anywhere at the current level (at the time of this posting). But I wouldn’t feel completely bullish until price bids above 1.5890. If and when it gets to that point I’d probably throw on my full position size. Keep in mind, my probing trades are small trades whereby if I’m wrong on my timing and it doesn’t work out it’ll be a relatively small hit to the account. But if it works out I’ve put on a small portion of my trade at a relatively great price. It’s a form of scaling into a trade whereby I scale in, in two pieces.
The danger at this point is that it might still be too early for EUR/AUD to follow through to the upside. It could conceivably drop to retest the congestion area so set your stops accordingly. A break below 1.5760 will make this scenario more likely so buyers beware.
Tags: AUD, EUR, forex charts, forex trading
Topics: What To Look At In The Market | 2 Comments »
October 24th, 2007 at 12:43 pm
[...] Original post by Eliseo Agas [...]
October 25th, 2007 at 3:56 pm
[...] EUR / AUD – Still Selling Off? [...]