Well, what can we say: even this trade is going really well. We are holding our long positions, obviously, until are forecasted target in the 1.525 area and more. For those who missed the long opportunity we posted earlier in late July
the pair is forming a nice flag, which confirms it's intentions to proceed higher. The consolidation could be longer than expected though so it is harder to enter long with tighter stops. Moreover, it could break all of sudden, for instance with a news event. A possible strategy, in this type of situation, would be to place a stop buy order slightly above the previous high, considering that if it would be triggered the pair would have broken the consolidation structure to the upside. Stop loss should be below corrective structure, or below previous low if tighter.
Trade with care and only with a backtested strategy that works for your trading style.
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the pair is forming a nice flag, which confirms it's intentions to proceed higher. The consolidation could be longer than expected though so it is harder to enter long with tighter stops. Moreover, it could break all of sudden, for instance with a news event. A possible strategy, in this type of situation, would be to place a stop buy order slightly above the previous high, considering that if it would be triggered the pair would have broken the consolidation structure to the upside. Stop loss should be below corrective structure, or below previous low if tighter.
Trade with care and only with a backtested strategy that works for your trading style.
Please don’t forget to follow us, if you feel that our analyses and views may be a useful complement to your trading strategies.
Thank you for viewing.
Note
Watch out for a potential break:Note
So EURAUD did not go exactly the way we hoped. It was however giving us signals that the pair could have been in a more complex consolidation pattern, as the Euro wasn't going so impulsively. Looking at the pair on the 4hr chart, we believe that the pair is going for a much longer abc consolidation pattern, on the 4hr time frame:
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.