EURAUD – A tale of two possibilities
During the last Best Practice class, we discussed EURAUD as it offers interesting opportunities to those who are prepared.
Taking a look at EURAUD on the Big Picture in the D1 chart.
- Price maintains a strong upward bias with no signs of bearishness.
- Current week (Wk2) price is supported with previous week (Wk1) expanding above a period of consolidation.
Moving into the H4 timeframe
- Trend in H4 is still up with no signs of change.
- Current price is at resistance of 2 weeks low
- Two possibilities can enfold
- Price closes above resistance zone and completes the criteria of a WTT WRMB. (WTT = With the Trend)
- Price rejects the resistance and validates the down CTT 1234 pattern clearly seen. (CTT = Counter the Trend)
*With regards to the WRMB, in this case, it is preferable to wait for a H1 box or D1 close above the level to be certain.
Some may ask which option should I choose? Answer is simple, you can always choose both! Don’t guess and let the market tell you the direction, but with a trade strategy ready for either moves will help to ensure you come out standing on top.