Understanding the Historical Volatility of Forex Currency Pairs
Reflecting on the significant support breaks of August 2018 provides a masterclass in market psychology. When Forex currency pairs like EUR/USD and AUD/USD breach long-standing levels—such as the 1.1508 and 0.7310 marks mentioned above—it often signals a shift in institutional sentiment that can last for months. In the 2021 trading environment, we see similar patterns emerging as global economies navigate the post-pandemic recovery.
Understanding these “breakout” moments is essential because they represent the transition from a ranging market to a trending one. For traders looking to stay updated on the macroeconomic drivers behind these shifts, Reuters’ currency market coverage offers real-time data on how central bank policies continue to impact global liquidity.
Technical Indicators for Major Forex Currency Pairs in 2021
While the specific levels of 1.1554 for EUR/USD were critical in 2018, the underlying logic of support and resistance remains the cornerstone of our strategy today. In 2021, we apply our Unique Mathematical Model to determine if a break is a “fake-out” or a high-probability entry. For Forex currency pairs, a “Professional Way” of trading involves looking beyond simple lines on a chart. We analyze the velocity of the move and the volume of orders sitting at psychological price points. This disciplined approach ensures that our clients are not merely guessing where the bottom is, but are instead entering trades based on verified momentum. To deepen your understanding of these core principles, Investopedia’s guide to technical analysis provides a solid foundation for how these price floors and ceilings are calculated.
What is your technical analysis telling you about Forex Currency Pairs EUR/USD and AUD/USD future movements? Have you observed that Forex Currency Pairs EUR/USD and AUD/USD has broken all the possible support levels last Friday the 10th of August 2018? Among the two Forex Currency Pairs viz. EUR/USD and AUD/USD we are discussing here, EUR/USD has broken the support level of 1.1554 (drawn from the low of November 2017) and 1.1508 which is drawn from the low of June 2018 as shown below:
Why Our Mathematical Model Excels with Forex Currency Pairs
At N P Financials, we have dedicated over 21,000 hours of market research to perfect our “Bingo” alignment strategy. This strategy is particularly effective for Forex currency pairs because of their high liquidity and predictable response to mathematical equilibrium. Whether we are analysing the short-term intraday movements or the long-term monthly continuing trends, our model seeks confluence. When the short-term trend matches the long-term trend, the probability of a successful trade increases exponentially.
In 2021, this has been particularly evident in the AUD/USD pair, which has faced renewed pressure from commodity price fluctuations. By following a purely mathematical framework, you remove the emotional stress of trading and replace it with a professional, data-driven routine.
Strategic Risk Management for Liquid Forex Currency Pairs
One of the most important lessons from the 2018 support breaks is the necessity of a pre-defined exit strategy. When Forex currency pairs move as aggressively as EUR/USD did when it broke 1.1508, traders without a “Stop Position” can face significant drawdowns.
At N P Financials, we emphasize that risk management is just as important as signal identification. Our proprietary strategies teach you how to set mathematically sound stops that protect your capital while giving the trade enough “room to breathe.” This is the key to exploring the possibility of earning a passive income; you must treat your trading as a business where capital preservation is the first priority. For those tracking the broader financial landscape, Bloomberg Markets provides essential insights into the volatility shifts that require these strict risk protocols.
The other one from the two Forex Currency Pairs in the discussion, AUD/USD has broken the support level of 0.7329 (drawn from the low of May 2017) and 0.7310 which is drawn from the low of July 2018. The last possible support (not so strong) of AUD/USD can be found at 0.7287, which was the low of 8th of January 2017 as shown below:
Turning Technical Insights into Results for Forex Currency Pairs
The transition from a retail hobbyist to a professional trader happens when you stop asking “what happened” and start asking “where is the next level.” By examining how Forex currency pairs behaved in 2018, we can better prepare for the opportunities of late 2021. Our goal is to train your “Professional Eye” to spot these setups before they hit the headlines. Whether you are trading major pairs, crosses, or exotics, the principles of price action and support-break confirmation remain the same. We help you build a portfolio of trades across our 6 Trading Asset Classes, ensuring that you are always positioned in the strongest trends. Develop your skills today, and start capturing second income by mastering the unique mechanics of the global currency markets.
To technically identify the next possible support levels of the two Forex Currency Pairs EUR/USD and AUD/USD in the Professional way so that it will be easier for you to Trade them in future and to find out the answers to all your Trading related queries, please contact us at 03 9790 6476 and book your FREE discussion session for 30 minutes at Level 3, 2 Brandon Park Drive, Wheelers Hill, Victoria 3150.
Now you can trade Forex currency pairs with us to explore the possibility of earning passive income keeping your day job.
Our Proprietary Forex Trading Strategy which work will guide you through every step of your trading in Forex currency pairs and explore the possibility of earning extra income. Learn what all other Forex Currency Pairs we are Trading in our Forex Trading Asset Class. Develop yourself as a professional trader capable of capturing second income in the future with us.
