Welcome in today’s price action setups preview, where we take a closer look at the most interesting currency pairs using one of the most effective naked trading techniques. For today, we prepared AUD/NZD, EUR/CAD and GBP/AUD recommendations.

AUD/NZD

Currency pair broke key support and everything shows, that it will decline further. As the trend is still upward, we should look for only the long positions. We should have such opportunity near the current support (marked on the chart), which is the quite strong level. Of course if any price action purchase signal will occur.

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EUR/CAD

Euro to Canadian dollar is closed between two levels – support and resistance. Currently cross approached the first one, which may end with rebound in the direction of consolidation upper limit. Euro sentiment however is downward, so such position will come with greater risks!

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GBP/AUD

And the last cross for today. Pound sterling vs Australian dollar. Pair in the short period of time rebounded from few-weeks lows and now approached a key resistance level. We can see a dynamic supply reaction here, which pushed the price clearly below (on Friday). Pin bar candle formed, which can be trader in three different ways:

  • Sell after breaking below minimum, SL above maximum,
  • Sell after breaking below minimum, SL above 50% retracement of a candle (better RR ratio than in the first case),
  • Sell limit at 50% retracement of a candle, SL above maximum. Better RR ratio than in the first case, and safer SL than in the second one. But there is still a risk that market will not correct the price and we will be left without a position in developing trend. Personally, I prefer this method – so I activate buy limit order at 50% retracement of this candle.

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