Whattup, my forex trading brothas!
Today we’re lookin’ at not one, but TWO trade trends on the daily.
First up is a nice and simple trend play on a trend line.As you can see, EUR/AUD is finding support at 1.6250, which lines up with an ascending trend line support that has been keeping the bears in check since March 2018. Talk about commitment!
Buying at current levels would make for a good reward-to-risk ratio especially if the euro pops back up to the 1.7000 area of interest or even the 1.8700 previous highs.
Not convinced that the euro is about to bounce from the Aussie? You can also wait until EUR/AUD makes new 2020 lows and breaks below the trend line before making plays for the 1.5900 and 1.5700 previous areas of interest.
Comdoll trading not your thing? Here are European currencies for ya!
Selling at the first signs of bearish momentum would work if the pound drops back down to its 2020 lows near 1.1200.
If you believe that the bulls are just taking a breather, however, then you can wait for a clear break above the channel and the SMAs and then aim for potential moves back to the 1.2800 or 1.3000 previous resistance areas.
Whichever bias you choose to trade, make sure you’re following your trading plan like you’re making your last trade ever!