EURAUD trade ideas
EURAUD - Short active !!Hello traders!
‼️ This is my perspective on EURAUD.
Technical analysis: Here we are in a bearish market structure from daily timeframe perspective, so I look for a short. I expect bearish price action after price filled the gap and rejected from institutional big figure 1.63000.
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EURAUD Massive Short! SELL!
My dear friends,
EURAUD looks like it will make a good move, and here are the details:
The market is trading on 1.6373 pivot level.
Bias - Bearish
Technical Indicators: Supper Trend generates a clear short signal while Pivot Point HL is currently determining the overall Bearish trend of the market.
Goal - 1.6267
Recommended Stop Loss - 1.6442
About Used Indicators:
Pivot points are a great way to identify areas of support and resistance, but they work best when combined with other kinds of technical analysis
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WISH YOU ALL LUCK
EURAUD - 4hrs ( Buy Trade Target Range 200 PIP ) Pair Name :EUR/AUD
Time Frame : 4hrs Chart / Close
Scale Type : Large Scale
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Key Technical / Direction ( Long )
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Bullish Break
1.63850 Area
Reasons
- Major Turn level
- Visible range Hvn
- Choch Area
- D / P H
- Fibo GOlden
Bearish Reversal
1.66000 Area
reasons
- Major Turn level
- Visible range Hvn
- Pattern Target
- P M / H
- Choch Zone
- Fibo Golden
Cross Currency Pairs and Strategies Connected with ThemCross Currency Pairs and Strategies Connected with Them
Cross currency forex trading has emerged as an intriguing segment that presents unique opportunities and challenges. In this article, we discuss commonly traded pairs, liquidity challenges, and the factors influencing cross exchange rates. Additionally, we present three trading strategies to help traders navigate the dynamic scene of forex cross currency pairs.
Understanding Cross Currency Trading
Knowing the basic concept of cross currency trading and considering the most frequently traded pairs can open a new realm of opportunities for traders.
Excluding the US Dollar Offers Opportunities
Cross currency pairs, also known as "crosses," involve currencies that are not paired with the US dollar (USD). For instance, if the euro (EUR) is traded against the Japanese yen (JPY), it forms a cross currency pair. Cross currency pairs introduce diversification opportunities and allow traders to gain exposure to specific economies and their interconnections.
Cross Currency Examples
Traditionally, the best forex cross pairs to trade are those that involve currencies from major global economies other than the USA. Here are a few popular and widely traded forex cross pairs:
- EUR/JPY (Euro/Japanese Yen): Known for its liquidity and considerable volatility, this pair attracts traders looking for opportunities in the Eurozone and Japan.
- GBP/AUD (British Pound/Australian Dollar): This cross offers a mix of major currencies, providing exposure to two economically significant regions.
- EUR/AUD (Euro/Australian Dollar): Combining the euro and Australian dollar, this pair is favoured for its liquidity and potential trend movements.
- GBP/JPY (British Pound/Japanese Yen): Renowned for its volatility, this pair is favoured by traders seeking the potential for substantial price movements.
Cross Currency Pairs May Have Liquidity Issues
While cross currency pairs provide diversification opportunities, traders need to navigate potential liquidity challenges. Less popular crosses often exhibit wider spreads, diminishing their attractiveness due to the increased transaction costs. The lower liquidity in these pairs can result in slippage, where the execution price deviates from the expected price at the time of order placement. To mitigate these challenges, traders implement advanced order types, like limit orders, which can potentially further enhance precision in trade execution, and stop-loss orders, which can potentially help limit potential losses.
Key Factors Affecting Cross Currency Rates
When considering major cross currency pairs, traders focus on the specific conditions of the countries involved in the pair.
- Interest Rates: Variances in interest rates between the two countries can significantly impact cross currency rates. Traders often monitor central bank decisions to anticipate interest rate changes.
- Economic Indicators: Economic data, such as GDP growth, employment figures, and inflation rates, play a crucial role in influencing cross currency exchange rates.
- Political Stability: Political events and stability in each country can impact investor confidence, leading to fluctuations in cross currency rates.
Trading Strategies for Forex Cross Currency Pairs
Effective forex strategies that exploit cross rate exchange discrepancies involve some of the most popular technical indicators.
Price Divergence Strategy: EUR/AUD
In this example for the EUR/AUD cross currency pair, traders use the divergence between the price and the On-Balance Volume (OBV) indicator to decide on taking long or short positions. Additionally, the MACD indicator is used to identify precise entry and exit points.
Entry
Traders look for a bearish/bullish divergence between the price and the OBV: the price is moving up/down, while the OBV is moving lower/higher, signalling a potential reversal of price momentum. The MACD line crossing below/above the signal line confirms a potential short or a long entry.
Stop Loss
Stop loss may be placed above/below the recent swing high or low for short and long positions, respectively.
Take Profit
Traders may set a take-profit target at a predefined support/resistance level or when the MACD line shows signs of a potential reversal.
You can visit FXOpen and try out the available technical analysis tools on our free TickTrader trading platform.
Bollinger Bands, Stochastic, and ADX Strategy: GBP/JPY
This strategy is effective in ranging markets. Bollinger Bands help identify price volatility, and the Stochastic Oscillator assists in pinpointing potential reversal points within the range. Traders often include the Average Directional Index (ADX) to assess the strength of the range-bound market.
Entry
Traders may consider a long/short position when the price touches the lower/upper Bollinger Band and then reverses. The signal should be confirmed by the Stochastic Oscillator moving above/below the oversold/overbought level, while the ADX should have low values, which confirms the weakness of the current trend.
Stop Loss
Traders may consider placing a stop loss just outside the Bollinger Bands for both long and short positions, taking into account their risk preference.
Take Profit
For long/short positions, traders might take profit when the price touches the opposite Bollinger Band and the Stochastic Oscillator makes a bearish/bullish reversal.
Price Reversal Strategy: EUR/JPY
This strategy aims to identify potential trend reversals based on overbought or oversold conditions as indicated by the Relative Strength Index (RSI) and the Money Flow Index (MFI).
Entry
Traders may consider entering a long/short position when both RSI and MFI indicate oversold/overbought conditions, typically below 30 and above 70 for RSI and below 20 and above 80 for MFI.
Stop Loss
The theory states that a stop loss may be placed just below/above the recent swing low/high or a significant support/resistance level, depending on the trader’s risk management goals.
Take Profit
Take-profit targets might be based on potential reversals in the opposite direction of the trade, signalled by both RSI and MFI being in the overbought/oversold area.
Final Thoughts
Cross currency trading provides a unique avenue for diversification and strategic opportunities. Understanding the challenges and employing effective strategies involving multiple indicators may empower traders to deal with this complex but rewarding segment of the forex market. You can open an FXOpen account and try your advanced cross currency pairs trading strategies.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
EUR/AUD "Euro-Aussie" Bank Money Heist Plan on Bullish SideHello!! My Dear Robbers / Money Makers & Losers, 🤑 💰
This is our master plan to Heist EUR/AUD "Euro-Aussie" Bank based on Thief Trading style Technical Analysis.. kindly please follow the plan I have mentioned in the chart focus on Long entry. Our target is Red Zone that is High risk Dangerous level, market is overbought / Consolidation / Trend Reversal / Trap at the level Bearish Robbers / Traders gain the strength. Be safe and be careful and Be rich.
Entry 📈 : Can be taken Anywhere, What I suggest you to Place Buy Limit Orders in 15mins Timeframe Recent / Nearest Low Point take entry should be in pullback.
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EurAud Trade IdeaI personally decided to execute some longs on EA. Price ended up respecting the support last where we had a clean bullish flip. This week EA is still bullish with price respecting a higher time frame HL making longs here still valid. Entry was on a 15 minute flip at the HL. Looking for a 1:3rr on this set up. If all goes well we can expect a new high to be made for this week.