We Have a Decision to Make in EUR/AUD | Vantage FX

We Have a Decision to Make in EUR/AUD

December 21, 2017

Good morning traders,

Remember our look at EUR/AUD swing high resistance zone? Click the link and get a refresher if your MT4 charts aren’t up to date with the levels in question, but the pair is playing out nicely.

The thing is, we now have a decision to make! First of all, let’s take a look at a zoomed out view of the EUR/AUD daily chart:

EUR/AUD Daily 1:

Click on chart to see a larger view.

As you can see, I’ve marked previous higher time frame, swing high resistance that has held… for now.

This is where your trading discretion comes in and you have a question to answer. Does the fact that this resistance level has held, trump the fact that for the entire year of 2017, EUR/AUD has been on a bullish tear? Do you put your weight in the trend, or in the higher time frame level? In an ideal trading setup, both of these would line up, but not here.

So let’s now zoom in and take a look at what price is doing now that the swing high resistance level has held:

EUR/AUD Daily 2:

Click on chart to see a larger view.

Yes it’s held, but only to the most recent price stall. If this previous short term resistance level can hold as support, it’s an excellent level to look to buy the pair off and manage your risk around.

For me at the moment, momentum and the trend wins out over the previous swing high resistance level holding. It’s a buy until it’s not.

Best of probabilities to you!

Dane Williams – Vantage FX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the forex trading account of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.




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