7/2 Analysis: +57 Pips EUR/AUD Breakout
If we do our initial analysis at the London open, you can see the EUR (pink line) is strong but turning down and the AUD (orange line) is weak but has been trending up.
What we would do here is place a pending order 10 pips above the current market price so that if the trend continues it will trigger our order with momentum on our side. If it doesn’t, we never enter the trade and risk nothing.
- EUR/AUD BUY
This is a clear illustration of how our indicator shows these moves in advance. When London opens, see how price pulls back down which matches what we saw on the indicator with the strong EUR temporarily turning down and the weak AUD temporarily turning up. If this continued, your pending buy order 10 pips above the open price would never have been triggered and you risk nothing.
However, in this case price does continue in the direction of the original up trend. I’ve marked where the pending buy order would be triggered on the way back up. From this entry, the pair moved 57 pips in your favor.
Watch the entire video analysis below:
You can see that our Currency Strength Indicator is an effective tool for picking out the highest probability, lowest risk trade set ups while avoiding market conditions that aren’t favorable. If you keep using this tool every day along with our daily Forex analysis, you will increase your win rate and be on your way to becoming a profitable trader long term.
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