The EURAUD made an impulse higher and is now correcting in a sharp angle. We either break bearish and can sell the continuation after a consolidation. Or we will see it settle and continue the bullish trend. Many Euro pairs show a comparable structure and we need to let the retrace play out to determine whether the reversal is for real or only a correction of the bull trend.
I personally didn't trade this pair but this is an example of how to trade such continuations either with a pending order or not.
Comment
⋅
I'm long this pair as suggested last week after the minor consolidation today. However I'll be looking for a reversal soon. 1.5676 is a likely top for this impulse. However I trade what I see and if the next consolidation is sideways again we should just be looking for another buy continuation. I will therefore update this pair frequently.
Comment
⋅
This pair is in an extension and due to the characteristics of this pair I mentioned that I liked to see another high. We saw that today although we don't see a bullish impulse. This is a good sign for a possible bearish break soon. We might move higher first but keep an eye on this pair and be careful buying EURAUD because I believe 1.5675 area will be the max for the month of May. (this is based on probability so it can also keep trending higher but I just point out why I won't buy here anymore for now)