EUR vs AUD Short Idea 9-4-13

FX:EURAUD   Euro Fx/Australian Dollar
134 2 1
Looking at this daily chart of the EUR vs AUD it really couldn't be any clearer as we see price was in an up trend which started on 8-10-12 but the steeper move progresses from 4-5-13 which brings us to the double top resistance level . Price first formed the resistance level topping out at 1.49934 before forming support at the 1.44484 and moving back up to form the double top . Price has since dropped back to the support level and is attempting to break this level. If you go to the 4 hour time frame you will see price has closed below this level three times already. I suspect price to retrace back to the 1.44484 level on the four hour time frame which would now be resistance. Once price retraces to this level I suspect the level to hold resistance and drop further to find support at the 1.38481 level. Now we must be aware as on the daily chart this could just be a pierce below support where we would then find support to hold and price move back up to the resistance level at 1.49983 and therefore be ranging between the support and resistance levels. No need to move until the market tells us what to do. Have a great trading day and God bless!
3 years ago
Yea I'm just watching the price action and reading what I see. The past previous three candles were strong bearish candles breaking a support level. I usually like to see a strong break but the daily has closed below the support. Also I look at what did price do previously at the level and then i expect the same until it proves otherwise and in this case it would suggest that the support holds, but we also need to know when our analysis is wrong and change our outlook. I just enjoy this stuff!
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