New page about eur/aud pair
Hi, everyone. Let me do a market trend analysis for today. I want to remind that I have started a few new pages that deal with specific currencies and I am intending to start a few more. Today I wrote my first post on eur/aud pair and you can find it on upper part of the page on the right. I will be updating those pages at least once a week and hope you will enjoy them and find something useful to implement in your trading. Let us go to trend analysis now.
News from Europe strengthen Euro and weaken US dollar and Yen
News from Great Britain and Europe (Interest Rate Decision) created huge daily trends in financial markets today. USD and JPY were beaten really badly. Euro was the champion of the day. British pound remained pretty weak throughout the day. Eur/jpy and eur/usd were probably the best candidates for long trades. Of course, you could have taken eur/aud or eur/gbp too, but if you want some orderly pairs eur/usd and eur/jpy would have been the best choices. Eur/gbp could be difficult to trade for we had news coming from both Europe and Britain at an interval of 45 minutes and to play one currency against the other could have been problematic.
Nice possibility to go up in eur/jpy after the release
Let us look how you could use the news event for trading eur/jpy. If you have been reading my posts I think you could tell by heart now the principle that I use for trading these events. I try to define support and resistance levels and place orders below and above them to trade breakouts that happen after economic news is released. In case of eur/jpy you had to place a buy stop order above 115.95 level for it was resistance with a stop loss order below 115.51 level, for it was support and wait for the market to break out upwards. You then had to move your stop following peaks and valleys principle (placing stop loss below 5 minute valleys). This would have gotten you out at 116.58 level, where your stop loss would have been taken away (in the plus zone).
Was the upward trend true or false today?
If the break was not fake, we are going to see a continuation of it tomorrow. How to test it? We have to wait and watch price action around support level now. It is in the area of 116.20-116.40 area. If the pair goes down to this area and forms 123 pattern we can go long again at the break of point number 2 in the pattern. Read my post on 123 pattern to understand better what I mean by that. If the pair does not form a reversal at the area we will have to conclude that the breakout upwards was false and we are going to see a continuation of a downtrend in eur/jpy.
Hope you enjoyed my market trend analysis.
See also:
Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.
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