Here I'd just like to go over a great buy position on EUR/AUD.
We know the pair is in a long term downtrend. This doesn't mean we can't take intraday buys on the pair providing we target sensible levels.
Here we are highlighting how a trendline can be utilised as dynamic resistance. The fibonacci level drawn from our 1hr swing low to high shows that our 0.764 level coincides with our descending trendline and adds confluence to the buy position. Never trade off fibonacci levels alone, but as confluence and to help you manage trades they are absolutely fine.
We can see our sensible target is the previous 1hr swing high.
We know the pair is in a long term downtrend. This doesn't mean we can't take intraday buys on the pair providing we target sensible levels.
Here we are highlighting how a trendline can be utilised as dynamic resistance. The fibonacci level drawn from our 1hr swing low to high shows that our 0.764 level coincides with our descending trendline and adds confluence to the buy position. Never trade off fibonacci levels alone, but as confluence and to help you manage trades they are absolutely fine.
We can see our sensible target is the previous 1hr swing high.