FOREX Chart Of The Day: EURAUD Buy At Support
Do you trade with support and resistance?
EURAUD has recently re-tested key support, but will the price rally?
Watch the video to learn more….
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, head currency analyst.
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In this video, we’re going to look at EUR/AUD as prices come back into an area of support.
The last time we took a look at EUR/AUD, we were looking for the market to break out of these highs through here. Actually took a position down at this previous structure point here.
Looking for the market to react from those previous structure highs, which we eventually did get. The market rallied up into our targets nicely. Now, the price has broken through these previous highs, through here and has formed a higher high.
We could potentially look for that trend to continue to the upside. So here we have the market making higher highs and higher lows. So, very much like what we looked for last time. When price breaks out of these structure highs here, we look for the market to come back and retest that area in order to continue looking for trend opportunities to the upside.
So looking at this –if I just grab a rectangle tool– We can see that price has come back, retested in this area.
Now what I really like is if we go to the four-hour timeframe, the price has formed a double bottom pattern. So we can see the market is trending back towards this area of support. We hit the support level, we rally, we hit those previous structure lows, we drop-in, we re-test these lows through here, and reject with this nice bullish candlestick just through there.
What also I like about this, is that price formed a lower low on the price, and a higher low on the RSI. So that shows us that there’s a little bit of divergence at this area just through here.
What we’re looking for is some upside, and I like the fact that the price has now broken that four-hour high. We could start looking for some long opportunities in here on EUR/AUD. If you want to wait as well, we could look for the trend to continue.
I like when we wait for that trend continuation, you can look for those impulse moves to come out of the market. So, if the price does form that double bottom break through this level, I’d look for that area to act as support in order to look for those long opportunities.
So then, you’ve got the daily time frame in an uptrend, you’ve got a four-hour timeframe in an uptrend. You can piece all those together and look for further opportunities.
So EUR/AUD, really like the opportunity here for some longs, and look for either along from in this area now or a break and re-test of this four-hour structure just through here, and see how that performs.
Thanks for watching, speak to you soon.
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