Sophia Todorova has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens.
Euraud appears to be setting up a bullish reversal after having closed last month with an engulfing bullish bar which found resistance below a shelf of past support at 1.3800s. The daily chart below shows the daily trendline retested at 1.3300, and the subsequent bullish pinbar just above the trendline. Price is currently hovering at the 50% fibonnacci retracement level. I initiated a long trade based on this support, and would like to see some follow-through price action. 1.3600 is likely to offer some resistance, as this represents the neckline area on the 4hr chart for the most recent down leg. This will be a major target for longs. Further ahead, 1.3800 and 1.4000 are additional targets that I am considering.
This pair really does offer great trading opportunities, but will require patience. In terms of trade management, I intend to take some profit at 1.3600, if the trade setup works out, and scale some back in for the other targets.
Thanks for reading, and I wish you a great trading week! 🙂
I am also watching Usdcad for a re-entry: http://winnersedgetrading.com/trading-plan-tarding-opportunity-trade-setup-technical-analysis/
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