One potentially useful aspect of technical analysis is that it can provide a reason to love the unloved.
In that context, I thought the hourly chart of EUR:AUD was worth drawing to readers' attention as an example of a potential ABC buy set up as we approach an interesting round of bond auctions later today
I've begun with a daily chart. This shows price testing a well established support area. The stochastic is also down in the oversold area which supports a buy set up in the shorter time frame chart
If the hourly chart rejects the Fib cluster it is now at, this would be a common entry strategy under an ABC or Gartley buy set up. To reject this level price needs to make a trend trough at or close to the Fib cluster zone.
This Fib cluster consists of:
- 61.8% retracement of O to X
- Projects B/C will be 61.8% of X/A
- Projects B/C will be 127% of the minor A/B correction
If there is a set up a stop could be placed just behind the low of the candle making the trough.