The EURAUD price has recently rallied forming a strong uptrend. Will this continue and will it offer us long opportunities?
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The last time we looked at the price of EURAUD it had recently broken out of the range and looked to be forming a bullish trend. Now this has formed the price has rallied significantly and could offer us some more trend trading opportunities.
The price is currently in an impulse phase which suggests that the daily timeframe should see price form higher highs and higher lows at key support levels.
We need to identify the daily timeframe trend in order to look for the bullish trading opportunities.
The daily trend needs to form a higher low in order to look for a trade which could form at a support level.
The previous swing highs which acted as resistance before could be an area of support. If the price forms a bullish rejection around this zone we could assume buyers are stepping back in and the trend could continue.
The current candle suggests we could see a daily retracement phase form, if this happens then we could look for a trade back to the support. This would be a counter-trend idea and would require the 4hr to change trend.
The best position would be to wait for the daily to react to the level then look for the bullish trend continuation on the 4hr time frame.
The trend could change here on EURAUD and we could see a move back to the support. We would need the price to form a new lower low and a lower high before looking for this opportunity.
If the price did form this pattern we could look to short the market to the support before looking for the long trade. Watch the previous 4hr lows for a retest and the 15minute change in trend to identify if the 4hr is going to trend lower in line with the daily retracement phase.
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