Trade Update: EUR/AUD Triangle Support

Once again, patience paid off for me on this trade as I held tight and waited for fundamentals to eventually push EUR/AUD past the 1.4900 mark. Wondering what I’m talking about? Don’t forget to read my initial trade idea!

Long EUR/AUD Setup

Yep, I’ve been watching this pair for quite some time, waiting for a long-term triangle support bounce and trying to catch what appeared to be a double bottom breakout last month. As it turns out, price was actually making an inverse head and shoulders and it FINALLY showed some bullish momentum past the neckline yesterday.

EUR/AUD 4-hour Forex Chart

EUR/AUD 4-hour Forex Chart

Risk-off moves have been driving forex price action lately, dragging the higher-yielding Australian dollar lower. The euro has been able to take advantage of these safe-haven flows, especially since the ECB refrained from adding stimulus in their policy statement last week.

There’s not much in the way of top-tier data from the euro zone for the rest of the week but I’ll be keeping close tabs on Australia’s jobs release, which might give this pair more upside. I’m considering adding on a break of the 1.5100 major psychological level to press my advantage in case price makes it all the way up to my target near the 1.5400 handle.

I’m also trailing my stop up to my initial entry at 1.4840 in order to protect my recent profits and I’ll likely roll it higher again if I’m able to add to my position. For now, I’m looking at nearly 200 pips in gains on a risk-free position. Woot woot!

As always, don’t risk more than 1% of your account on a single trade and make sure you read our risk disclosure if you’re thinking of taking the same setups. I’ll keep y’all posted through my Twitter account if I’m making any adjustments.

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