I have, and honestly I still think there it will continue its way down. It’s been trading in a bearish condition and making historical lows for a while now. And you know what, if the market is going down, I’ll keep looking for short opportunities (I stopped trying to pick bottoms a long time ago):
So as long as the EURAUD keeps trading below 1.2451 I’ll be looking for short opportunities.
Do you agree with me?
Good Trading!
Raul Lopez
Forex Coaching
Do you go with the flow? Or would you rather try to profit from an eventual pullback?
Sometimes it’s difficult to trade when a currency pair is trading at historical lows/highs, why? Because we all think that sooner or later the market will retrace back and it could have us stopped out if we go with the flow. What do you do under these circumstances?
This is the case of the EURAUD, it has been reaching historical lows for a month now (almost daily). Here is the weekly chart:
If you asked me the same question I asked you at the beginning of the post, I would go with the flow: keep looking for trade opportunities in the direction of the trend. Yes, the market will have a pullback, but we don’t know when, it could be tomorrow or it could be next month.
In the EURAUD case, I’ll keep looking for short opportunities without a doubt. Since we don’t have further support levels I’ll use a 3:1 risk reward ratio as my take profit order.
Trade safe and have a great week ahead!
Raul Lopez
Forex Training
What do you think about the market this morning? I don’t see many opportunities, most currency pairs are trading at an important level, or they are just trading between random levels making it difficult to trade. Do you agree with me?
One of the very few exceptions is the EURAUD, it is clear that it’s trading in a bearish condition and I’m going to be looking for short opportunities here.
I’d like to see a retracement to the ST resistance level:
If I see significant downward pressure around the resistance level, I’ll definitely look for short opportunities.
The next LT resistance level is around 1.2990
Trade Safe!
Raul Lopez
Forex Course
Last week I had a trade open on the EURAUD but had to close it because it didn’t break the bottom of the range. Yesterday it broke the bottom of the range so I’m getting ready to give this cross another shot. This is what I’m waiting for:
If it retraces back to the ST resistance level around LOPS2 and forms a significant pattern with downward pressure I’ll go short.
I’ll let you know what happens.
Trade Safe!
Raul Lopez
Forex Course
As you already know, I have an open trade on the EURAUD, I’m short since last Tuesday from 1.3485. It is currently trading at 1.3395 (90 pips on my favor) and I’m just planning what I’m going to do with this trade. Here is the chart:
I’ll have to take a decision whether or not leave my trade open over the weekend, and here is my plan:
So, both scenarios are good! Hope all trades were like this one…
Have a great weekend! And see you next Monday!
Trade Safe!
Raul Lopez
Forex Training
Yesterday I took a trade on the EURAUD based on the daily charts, I like the way its trading because both, the bottom of the range and the top of the range are very clear, and it recently got rejected from an important resistance level, which means that it is likely to continue its way down until it reaches the next LT support level:
My plan is to hold this trade until it reaches the next LT support level (lower blue line). What is interesting about this trade is that I’m risking 1% of my account, but if the market hits my TP order, I’ll make 7.1%, sounds good doesn’t it?
Trade Safe!
Raul Lopez
Forex Course
One of the currency pairs that I’m currently monitoring, and looking for long opportunities is the EURAUD. It is trading well above all important levels on the short term charts. This is how the short term chart looks like:
Basically what I’m waiting for is just for a small retracement, then a significant pattern with upward pressure to go long.
The next LT resistance level on the EURAUD is at 1.4224
Trade Safe!
Raul Lopez
Forex Course
I think it is clear, on the long term charts it is trading in a bullish condition, it was rejected from an important LT support level, its nearly halfway the range but it still has some room left before it reaches the next resistance level (I’m talking about 370+ pips).
On the short term charts, it is trading in a very well defined range, but since it is in a bullish condition (I always trade in the direction of the long term charts) only long opportunities are in play:
So you know what I’m doing here… I’m looking for long opportunities.
Trade Safe!
Raul Lopez
Forex Course
Let me tell you what I do with the weekly charts. Its known that the longer the time frame the more important it is, so when you do analyze the hourly and the daily charts, what you see on the daily charts it’s more important than what you see on the hourly, its more accurate, has less noise and has much more information.
Anyway, when I’m long or short, I take a look at the weekly charts and see if I can scale up my trade to such time frame, it needs to have a very clear market condition in order to be scalable. Such as the EURAUD right now, take a look at it:
If I find a trade on the EURAUD, I’ll definitely scale it up here, its clear that the market is trading in a very well defined range, and since it has been rejected from the bottom of the range, it is likely to continue its way up until it reaches the next LT resistance level.
Makes sense? Let me know…
Trade Safe!
Raul Lopez
Forex Training
Earlier I wrote about the EURAUD, it was trading in a bearish condition, well, it retraced back to the main ST resistance level and formed a significant pattern with downward pressure:
Here are the details of my trade:
Entry: 1.3241
SL: 1.3281
TP: 1.2979
We need to be careful with this trade though, later today AUD employment report is released and tomorrow we have the interest rate announcement of the EUR.
Trade Safe!
Raul Lopez
Forex Training
Later today the employment report of AUD will be released and tomorrow we have two interest rates announcements, for the EUR and GBP, but even when the EURAUD is related to both of them, I think we have enough time to let the market move on our favor, and then be able to move the SL close to the breakeven level so that we can leave our trade open during those announcements.
Here is the 30M chart:
As long as the EURAUD keeps trading below the ST resistance level 1.3264 I will be looking for short opportunities. Notice also it is trading below every important level on the short term charts.
Trade Safe!
Raul Lopez
Forex Course
Definitely the EURAUD is one of the currency pairs that I like the most today, it broke both, the short term and long term support levels, and it still has a long way to go before it hits the next LT support level:
The next LT support level is at 1.3302, more than 200 pips away from where it is currently trading at.
Trade Safe!
Raul Lopez
Forex Course
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The EURAUD traded in a tight range since the 8th of July, I was waiting for the market to break the range before looking for any trade opportunities, and it just happened (helped by yesterday’s fundamentals):
My trading plan for the EURAUD is to look short opportunities as long as it trades below the 1.3137 level. Its important to notice that it is also trading below every important level on the short term charts, we only need a significant pattern with downward pressure to go short.
The next LT support level is at 1.2950
Trade Safe!
Raul Lopez
Forex Training
The EURAUD is trading in a very clear bearish condition because it broke through an important LT support level on the daily charts. On the short term charts its trading in a clear range and it got rejected from the top of the range with significant downward pressure:
Here are the details of my order:
Entry: 1.6175
SL: 1.3216
TP: 1.2980
Trade Safe!
Raul Lopez
Free Forex Education
The EURAUD is trading around an important LT support level, and in the ST charts, it is trading in a well defined range, we need to wait for the market break this range then I’ll start looking for trade opportunities in the direction of the breakout:
The next LT support is at 1.2950 and the next LT resistance is at 1.3788
Trade Safe!
Raul Lopez
Forex Training