The euro – Australian dollar pair entered an especially narrow shuffling range just a week and a half ago that holds within it a high potential for a breakthrough with a strong momentum. Because the pair's original direction came from above, then the preference is for a breakthrough in the original direction as well, in other words, a downwards breakthrough. Having said that, we shouldn't ignore the possibility of an upper breakthrough in the direction of the resistance level of 1.4000.
Because of this, it is already possible to enter a short position at the present price and in the event that the support level of 1.3495 breaks, the short position can be strengthened by another portion. The exit point is placed close to the lower support level of 1.3270. On the other hand, if the nearby resistance level is broken at 1.3675 this will constitute an indication for the continuance of the upwards movement. This will obviously bring about a quick exit from the short position and a move to a long position.
Sign up to create alerts for Instruments, Economic Events and content by followed authorsSign up
Already have an account? Sign in