FOREX Trading: Just Missed EURUSD Longs, Pending EURAUD Long
I've been following the EURAUD for some time. Today's outside day reinforces the idea that this market is turning. 12440 is now estimated support and a level that I'll be looking to buy into. 12650 is resistance although it's possible that a significant low is in place.
As I mentioned here yesterday, I'm flat right now. This is the longest (3 days) that I've been completely out of the market in a very long time (I can't remember the last time that I wasn't trading for 3 days). I'm not involved right now because I'm not comfortable. My plan was to return to the game today. Specifically (and as mentioned on Twitter this morning), my plan was to buy a dip on Draghi comments with targets at 13185 and 13225 (I didn't think we would get there until tomorrow). I had support between 13080 and 13090. The market dip only made it to 13098 and I never got in. The point of this post is to convey that I am much closer to the rhythm of the market than I was earlier this week. The thinking is now correct, but the execution is slightly off. Like markets, one's rhythm with the markets ebbs and flows. In order to move forward, sometimes you need to retreat (be flat) but never stand still (stick with a losing trade, idea, method, etc.).
--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com
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Jamie is the author of Sentiment in the Forex Market.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.