This is the last trading day of the year and as usual, we want to close the week and the year on a positive note.
Yesterday, I pointed out a Euro under-valuation relative to AUD as shown by technical indicators. Well, there is a better entry in this currency pair and I thought maybe you should take advantage of this morning star and reap profits assuming it goes as planned.
The daily chart stochastics is trending around the oversold territory and chances of a buy signal being printed after today’s price action is high. That is also dependent on if GBP bulls continue pushing prices higher.
In the 4HR chart, we not only have a stochastic buy signal but after this candlestick, bulls might actually break and close above the minor resistance trend line connecting the last 4 weeks highs. Ideal take profit is December highs but you can move your stop loss and lock in 300 pips once a 1:3 risk reward ratio has been hit.
Trade as follows:
Stop Loss: 1.7190
Take Profit: 1.7750
Have a good trading day and let’s all have an awesome 2018!!!!