Even though it’s a new trading day, it’s still the same old trading setup.
Once again we are back to the Euro Crosses at the start of the week with and a familiar setup in EUR/AUD.
Price has been testing this higher time frame support level multiple times for just about the last six months. I haven’t shown the chart here, but if you zoom out and take a look at the weekly chart, you will see the zone had some key rejections back in 2013 and then again in 2010. It’s significant.
If that’s not enough for you, the higher time frame level is made even more significant because of how hard price bounced off the level. That 2013 bounce went close to a 2000 pip rally straight vertical. Yikes!
The setup on the hourly chart marked here is one that we speak about a lot on the blog. Daily support holds then we look for an entry on an intra-day retest of short term resistance turned support to maximise the risk:reward on our trade.
Now I know that many of you (me included, come on Sydney FC!) wouldn’t have been at your charts that late on a Friday night, but the setup is very much still valid and in play heading into Monday.
This is a guest post originally appeared on Vantage FX. Reposted with permission.