Sophia Todorova is the host of the live trading room for the London session. She has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens. To Trade Live with Sophia Join Winners Edge Trading Premium Services.
The euraud currency pair has bounced back significantly from its 1.3920 lows. The monthly timeframe has a beautiful set of double bottoms, and I am on the lookout for a trading opportunity to buy up to the 1.5240 resistance area. The red horizontal line on the monthly chart below indicates the area of interest. There is impressive past support there that I would expect to cap the rally for a while.
In the meantime, I am watching for a test of 1.4720 on the 4 hr timeframe. The chart below has another horizontal line that marks a shelf of past resistance. If the market moves down to this area, as I am anticipating, my trading strategy will be to go long at those levels. I would wait for a bullish confirmation of the reversal in the form of a 15 min/ 1 hr trendline break, or an engulfing bullish candle on the 4hour timeframe.
If you are interested in trading this with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.
When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
You can visit my last article here: http://www.winnersedgetrading.com/trade-opportunity-gbpnzd/
Other useful blogs:
Forex Crunch: Usd/Cad Outlook- July 5-9
The GeekKnows- Daily commentary on eurusd
One other free trading tool I recommend is Currensee . It can be a useful tool to be able to see how other professional traders are doing.
