FOREX Chart Of The Day: Why Trade EURAUD Long?
Hi, and welcome to this Blueberry Markets video update with me, John Kibbler, head currency analyst.
In this video, we’re going to break down EUR/AUD. This is our latest position, and we just want to break down why we got into this position in the first place.
So, as we can see here on the daily timeframe, recently, the price has broken into new highs just through here. Now the market is breaking out those highs. Typically, if we’re going to see a trend in the market, we would see a retest of the breakout zone which we’ve just seen recently with price pulling back into this zone just through here.
If I place a rectangle just on these highs, drag it across and just up through here. We can see that when the price got into that zone, the market started forming low ranging candles and indecision candles where the price was closing back within the candlestick ranges. So, this candlestick closed back within that one, and then this one broke the high of that one but closed back within.
So, this is just showing us that there’s indecision at this potential supporting area through here. In the strength and weakness analysis, we identified that we might want to be looking for the Australian Dollar to continue to get weaker.
I’m looking for those long opportunities on EUR/AUD. What we saw was this nice strong bullish closed last night, which signaled to us that we could see a rally to the upside if the market was to break through these highs just through here, which we’ve seen so far throughout today.
If we go to the four-hour time frame, what would I expect from this market or if you’re not in this move, what would I expect for you to look for and it’s for the market to start trending to the upside. Again using the same sort of rules as what we used to trade off the daily time frame, I would use to trade off the four-hour time frame as well.
So, the level of interest for me at this point in time for the four-hour time frame would be this zone in here, which is that sort of previous structure highs through here, as well as that little bit of support there.
If I just change the color on this rectangle, we know that that’s a four hour supporting point through here. What I would expect to see now is price retest this zone and then continue to break to the upside and form a trend if that market trend is going to continue.
So, the Euro was looking really good for some bullish trading opportunities. If you’re not already in this, look for this four-hour pull back through here in order to look for a long position. Targeted just above the highest because it’s a key psychological level of 1.66, so expecting the market to value up into this sort of area. Let’s see how this one plays out.
But thanks for watching the video. If you like it, please like and subscribe to the Youtube channel for some more trading content and I’ll speak to you soon.
We hope our forex chart of the day analysis helps you in your trades. Practice trading the EUR/AUD pair with free $50,000 funding when you sign up for a free demo account at Blueberry Markets.