in today’s day trading analysis I will talk about EUR/AUD .
What I like about the situation on this pair right now is that three independent trading setups point me to the same trading level – a strong Support around 1.5802.
Let me now talk about those three setups one-by-one!
Volume Profile Setup
The EUR/AUD is currently moving aggressively upwards. It seems that strong Institutional Buyers are manipulating the price upwards (using Market Orders).
The BIG guys usually defend those zones. They are important for them since they placed a lot of their trades there.
Such Cluster is on the EUR/AUD right now.
This Setup is called the “Trend Setup” and the Support it reveals is at 1.5802.
Price Action Setup
The next setup that points to the same around 1.5802 is based on Price Action.
If you look at the chart again and look at the places where the price reacted yesterday, then you can notice that it bounced off the 1.5802 area twice.
Because of those two strong reactions we can now tell, that it was a strong Resistance yesterday. Now, the price blew past this Resistance and the Resistance Became a Support.
This is an old Price Action Setup that says that breached Resistance becomes a Support. This is not my trading setup, but I still like to look for it and place my trades based on it. Especially when it aligns with my Setups.
You can learn more about this Price Action Setup here:
I hope you guys liked my analysis! Let me know what you think in the comments below!
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