EURAUD price squeeze

Good Morning Dynamic Traders

Hope you're all well and had a successful couple of weeks on the markets. It's good to be back although the Arctic conditions here in London has been a bit of a shock!

It seems the markets have been a little unsure of late and there have been some pullbacks and breathers across some currencies. So it may well have been a good time to be away.

Below is the EURAUD daily chart. I've chosen this one today to highlight the chart pattern we have forming. You can clearly see the triangle formation and inevitably price will create a BOB - either continuing with the friendly trend or bouncing up or even possibly reversing.
















We can gather from the chart that price has been in a very healthy downtrend, without any deep pullbacks. The most recent breather has behaved perfectly, tagging the 50 fib with some nice indecision candles. We have the TL acting as R and the trend in our favour. However price is encountering a strong support level which is also in proximity to the figure - so how will price react?

As SM traders we'll wait to see what the market will do and then take the appropriate action. Be impartial and don't have any expectations of what the market may hand out.

Have a great trading day!

Sonia