The EURAUD has now reached a key decision point on the daily price action chart that could decide where price goes over the coming days and weeks. This level has been a proven and major price flip level, acting as both a support level back in may of this year before price smashed lower and in recent times acting as a resistance whilst price has been contained lower.
As the second 8 hour chart shows below; price did make another attempt to break out higher and bust through the key daily chart level, but price made a false break with price quickly snapping back lower creating a false break pin bar with the nose of the pin bar on the 8 hour chart making an obvious false break of the key daily level.
After confirming this false break trigger signal, price moved lower and into the near term support, but the demand and bulls still look to be strong in this market at this stage and price has once again popped higher to close the day up near the major decision point level. If price can break higher and through this level it could create a strong move higher because price has been contained within this breakout area for so long. A breakout higher could also present trading opportunities for traders by looking for setups at the key daily level on their intraday time frames with a quick breakout higher and re-test of the level. I discuss how traders can look to do this in the in-depth trading video here; The Secrets Traders Can Learn From Candlesticks & Price Action.
EURAUD Daily Chart
EURAUD 8 Hour Chart
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I still don’t see a good signal at D1, isn’t that we’re supposed to wait for the signal at D1 TF or I should also pay attention at H4 TF for entry?
Hello Sky,
this market summary is pointing out that the EURAUD is sitting underneath a key daily decision point and a major resistance. As the post goes through, there is no trade to be made at this stage, but if price can break through the key level, there potentially could be then.
If this happens and price breaks higher, potential setups could be hunted on the smaller intraday time frames with a quick breakout higher and re-test of the old resistance and new support watching to see how the price action behaves and to see if the key daily level holds as a price flip level.
Johnathon