I would like to talk about pair correlation here.
If you are bearish on the EURAUD and EURNZD (see related ideas), which pair would you short if you can ONLY take one trade ??? Try think of your answer first before continue reading. What should be your thought process ??
My thoughts
One way to decide which pair to choose is to look at AUDNZD. If AUDNZD currently gets supported here, that would show us that the AUD is stronger than NZD. That means shorting EURAUD would give you a bigger move, hence being a better option. Make sense ?
(PM me if you need more explanation)
Trade Execution
If the support holds, wait for any rejection candles, such as a pin bar or a hammer, to go long.
If you are bearish on the EURAUD and EURNZD (see related ideas), which pair would you short if you can ONLY take one trade ??? Try think of your answer first before continue reading. What should be your thought process ??
My thoughts
One way to decide which pair to choose is to look at AUDNZD. If AUDNZD currently gets supported here, that would show us that the AUD is stronger than NZD. That means shorting EURAUD would give you a bigger move, hence being a better option. Make sense ?
(PM me if you need more explanation)
Trade Execution
If the support holds, wait for any rejection candles, such as a pin bar or a hammer, to go long.
