AUD/EUR Trade

OneDropEast

Newbie
6 0
Hi anyone, here is my first post - a trade idea for the AUD/EUR currency pair.

Long trade, opening ASAP, but above 0.6964 (which is above the 23 October 2014 daily high of 0.6963, which is the most recent peak on the daily chart).

Stop loss at 0.6790 (which is below the 16 October 2014 daily low of 0.6798, which is the most recent trough on the weekly chart).

Target price = 0.7112

The target price corresponds with closing price of the 1st September 2014 period, the day which saw the peak of the early to late August upswing in the currency pair. Indeed, the pair continued higher to around 0.7245, however the RSI (14) level dropped from above 70 between the 1st and 2nd of September - the first sign of the upswing running out of puff.
The price breaking back down through this target level on 10 September 2014 corresponded with the DI+ crossing below the DI- (14 period), MACD (12,26,9) crossing back below the Signal line, and Momentum (12) breaking into negative territory.

Technicals that support the trade direction:
- Price: 29 October 2014 the pair closed above the 23 October 2014 daily high of 0.6963, which is the most recent peak on the daily chart. This while the daily chart shows a confirmed uptrend.
-RSI: Divergence between 23 September 2014 (price low 0.6875, RSI 31.576) and the weekly trough on 16 October 2014 (price low 0.6798, RSI 35.521). RSI is presently above 50.
-Momentum: Similar divergence between the 23rd September 2014 and 16 October 2014 (-0.02902 to -0.01157), and is currently positive and confirming the move above the 23 October high.
-MACD: Similar divergence to the above two indicators, and is presently above the signal line, in positive territory, and confirms the price break above the 23 October high.
-Directional Movement: DI+ is above DI-, and fast approaching the ADX

*************
 

Forexmospherian

Legendary member
39,928 3,301
Hi One Drop East

All the very best with your trade

Unfortunately not got Aud / Eu on my currency broker list - only EU / Aud or AU or other aussie pairing

Do you trade the AU and EA ??

Regards


F
 

OneDropEast

Newbie
6 0
Hi Forexmospherian,

My apologies, was AU and EA referring to AUD and EUR currencies? I haven't spent much time on trading forums so may be a little naive with the lingo! :)

I am based in Australia, so my brokers offer a large number of AUD-based pairs that I like to keep an eye on. But they also have quite a few USD-, EUR-, GBP-, NZD-based pairs available to trade also, as well as a few other 'exotics'. Although any pair that is AUD- or NZD-based tends to have a lower spread in this part of the world, so I would trade the AUD/EUR as opposed to EUR/AUD because of that. Having said that, the aussie/euro seems to be a fairly liquid pairing so the difference in spread is fairly minimal!! :)

What have you got your eye on at the moment?

Regards
 

Forexmospherian

Legendary member
39,928 3,301
Hi Forexmospherian,

My apologies, was AU and EA referring to AUD and EUR currencies? I haven't spent much time on trading forums so may be a little naive with the lingo! :)

I am based in Australia, so my brokers offer a large number of AUD-based pairs that I like to keep an eye on. But they also have quite a few USD-, EUR-, GBP-, NZD-based pairs available to trade also, as well as a few other 'exotics'. Although any pair that is AUD- or NZD-based tends to have a lower spread in this part of the world, so I would trade the AUD/EUR as opposed to EUR/AUD because of that. Having said that, the aussie/euro seems to be a fairly liquid pairing so the difference in spread is fairly minimal!! :)

What have you got your eye on at the moment?

Regards

Hi O D E

AU is short for AUD / USD pair and EA is the EUR / AUD pair

My spreads on these 2 range from 0.3 to 2 pips top on the EA pair - as thats a larger mover

I did try Pepperstone as a broker about 3 yrs ago - was recommended - but back with a couple of European ones atm

I am full time - short term Intraday just on FX pairs and normally I trade up to 6 -8 pairs and the AU and EA are on my daily lists - and today I have been scalping the AU along with EU / GU and earlier on the EJ ( Eur / Jpy )

I had wanted to check out your take on the pair you are trading against my short term set up - but as mentioned cannot get a chart up on my platforms atm

I wish you well and if you prefer staying with Aussie pairs - I can give you my take on the 4 mains ones - ie AU / EA / AC / AJ when you are looking at an intraday trade

All the best


F
 

OneDropEast

Newbie
6 0
Hi Forexmospherian

OK that makes sense, thanks for the education!

I haven't traded with Pepperstone (for no particular reason), I trade mainly with IG but occasionally with CMC. And I am very satisfied with IG thus far.

Intraday trading is a world I have never set foot in. Perhaps one day I will, when I can summon up enough courage!

With respect to your intraday trading, broadly what is your strategy? I noted that you have a pool of 6-8 pairs, so I am guessing that on any given day you tend to focus more closely on the ones that are more active than the others? And is that by purely technical, or a mix of technical/fundamental analysis?

Regards
 

Forexmospherian

Legendary member
39,928 3,301
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock