EURAUD Trading Idea

by: COLIBRI TRADER

Dear traders,

The trading idea from last time is over 110 pips in profit. It was a clear signal from DAX that buyers are becoming more enthusiastic about coming back to this instrument. Two things you need to watch out in this trade: 1) We are getting closer to a major resistance level (11,680) 2) we are in a major uptrend. Having said that, it means that we will either experience a breakout or DAX will revert after reaching this level. One way or another, I will be extra careful when price starts approaching this level.

EURAUD Trading Idea

My trading idea today is to long EURAUD. I have been waiting for this pair to reach the 1.4100 for some time now. I have noticed that on Friday the level was reached and price bounced off it. The candle that formed on the close of the day was an inside bar. This gives me further indication that more buyers will be looking to enter their longs, too. Since the price might try to make a new lower low, I will be extra careful when planning this trade. If all goes well, a good entry for me would be the level of 1.4100. My stop would be more generous and will be placed at 1.4000. I will be looking for an exit at around 1.4400 and secondary 1.4700.

Happy Trading,

Colibri Trader

P.S.

If you have not yet downloaded the EURUSD Data Analysis, you can still do so HERE