EURAUD Reverses on News
- EURAUD Breaks Support on News
- Today’s Range Begins at 1.4332
- Bullish Reversals Triggered Over 1.4404
EURAUD 30Minute Chart
(Created using FXCM’s Marketscope 2.0 charts)
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The Euro has opened lower this morning against most G-8 currencies, on worse than expected CPI data. The EURAUD, as seen above, is an example of the decline, as it has traded as much as 123 pips off of its daily high. Currently the pair is threatening to break towards a lower low, on a breakout of support. Support is found at the S4 Camarilla Pivot at a price of 1.4309. In the event price moves to a lower low, traders can begin to target a 1x extension of today’s pivot range located 48 pips below S4 support at 1.4261.
If there is a halt in Euro weakness, traders will look for a reversal in price for the EURAUD. A move back inside of S3 support at 1.4332, would signal that the current move is likely a false breakout. In this scenario, traders may begin looking for price to retrace back towards range resistance found at the R3 pivot at a price of 1.4380. A complete bullish reversal would also transpire in the event of price turning and breaking a higher high above 1.4404. In this instance, the current bearish momentum would be nullified and traders can begin positioning with the markets new direction.
Are you new to trading with pivot points? To become more familiar with Camarill Pivots and how to use them for day trading FX Reversals, check out the suggested reading links below. This way you can continue your trading education, while working towards actively incorporating pivot points into your selected day trading strategy.
---Written by Walker England, Trading Instructor
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.