News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
FX Reversals: EURAUD Breaks Support

FX Reversals: EURAUD Breaks Support

Walker England, Forex Trading Instructor

Talking Points

  • EURAUD opens US trading below S4
  • A bias towards lower lows remains under 1.4257
  • A move above 1.4296 would signal a potential false breakout

EURAUD 30min Chart

FX Reversals: EURAUD Breaks Support

(Created using FXCM’s Marketscope 2.0 charts)

The EURAUD began its sharp overnight decline on Aussie CPI data coming out in line with expectations. Price began to immediately drop, and move below trading range support at 1.4296. The end result was price breaking out and now trading under the S4 support line found at 1.4257. As price continues to move towards lower lows, breakout and trend traders will look to take advantage of the currency pairs continued downside momentum.

Price of the EURAUD has repeatedly tested the S4 line of support, and Breakout traders should always be aware of the potential for a false breakout. A move back above the S3 Camarilla pivot point, would signal another price reversal for the day and an end to current market conditions. At this point, breakout and momentum trading should be concluded and traders can consider fresh entries with the markets new influenced direction.

FX Reversals: EURAUD Breaks Support

Are you unfamiliar with camarilla pivots and trading intraday market reversals? Increase your trading education with DailyFX! You can continue learning and work on your trading education HERE.

Then, to practice setting up orders using Camarilla Pivots, register for a FREE Forex demo with FXCM. This way you can develop your scalping techniques while tracking the market in real time.

Click HERE to Register Now

Previous Market Setups:

FX Reversals: USDJPY Resistance Update

FX Reversals: EURCAD Reaches Intraday Resistance

FX Reversals: NZDJPY Intraday Resistance

FX Reversals: EURCAD Resistance Update

FX Reversals: EURUSD Intraday Breakout

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com. Follow me on Twitter @WEnglandFX.

To be added to Walker’s e-mail distribution list, CLICK HERE and enter in your email information.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES