EURAUD WEEKLY ANALYSIS 6th Jan --10th Jan 2014

We saw this pair broken the 1.5020 support level, established between late July to early August 2013, rather convincinly to 1.5580 which has also been established as the letest resistance formed throughout december due to a percieved double top formation
We saw this pair breaking the double top with a high momentum bar. After making a sumptous 300 pips from this move, I expect the market to test 1.5020
If we see a bullish reversal candlestick formation. like the PIN BAR, ENGULFING BAR,EVENING STAR, RAILWAY TRACK, we should be following this pair back to 1.5580 and beyond

Conversely, if this pair break 1.5020 with a high momentum, I will look for a good bear set-up. If the market shows a good downward move, we should be expecting it at 1.4545 support level. I always love minimum of 1:2 risk reward ratio

Let the patience and lay 'AMBUSH' for a SNIPPING position to enter this market.If this market move rather too fast ,I normally wait for a pulback, because market does pullback 70% of the time and they are safer than the first breakout.

Another starategy I use to breakout is to wait for congestion/consolidation like a doji candle or a tiny candle formed inside the breakout candle. This is to avoid fake breakouts which happen about 50% of the time, if not more

I will keep you updated as this pair unfold in the course of the week

Have a pipful week

You want to learn price action trading, contact me at sanmiadeagbo@yahoo.com