- EURAUD opens US trading below S4
- A bias towards lower lows remains under 1.4257
- A move above 1.4296 would signal a potential false breakout
EURAUD 30min Chart
(Created using FXCM’s Marketscope 2.0 charts)
The EURAUD began its sharp overnight decline on Aussie CPI data coming out in line with expectations. Price began to immediately drop, and move below trading range support at 1.4296. The end result was price breaking out and now trading under the S4 support line found at 1.4257. As price continues to move towards lower lows, breakout and trend traders will look to take advantage of the currency pairs continued downside momentum.
Price of the EURAUD has repeatedly tested the S4 line of support, and Breakout traders should always be aware of the potential for a false breakout. A move back above the S3 Camarilla pivot point, would signal another price reversal for the day and an end to current market conditions. At this point, breakout and momentum trading should be concluded and traders can consider fresh entries with the markets new influenced direction.
Are you unfamiliar with camarilla pivots and trading intraday market reversals? Increase your trading education with DailyFX! You can continue learning and work on your trading education HERE.
Then, to practice setting up orders using Camarilla Pivots, register for a FREE Forex demo with FXCM. This way you can develop your scalping techniques while tracking the market in real time.
Click HERE to Register Now
Previous Market Setups:
FX Reversals: USDJPY Resistance Update
FX Reversals: EURCAD Reaches Intraday Resistance
FX Reversals: NZDJPY Intraday Resistance
FX Reversals: EURCAD Resistance Update
FX Reversals: EURUSD Intraday Breakout