EURAUD Price Action Analysis – 9th Oct 2018
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EURAUD has been Bearish on the H4 chart. The price pattern suggests that the price has kept making lower lows by making breakouts. Today’s price action has been very bearish as well. However, there is a strong level of Support nearby. If that level gets broken by an H4 candle, then we might get an opportunity to take a short entry.
As the chart shows that the price has been heading down after making that Bearish Engulfing candle at a very important level of Resistance. The level of 1.62655 is the level of intraday Resistance. The price had a strong rejection from this level earlier today. Now the level of 1.61950 is the level of Support here, which has to be broken by an H4 candle and to produce an H1 Bearish candle later to offer us the short entry. Let us have a look at the summary of the trade…
Sell Stop Order: 1.61950
Stop loss: 1.62655
Take profit: 1.60765
Validity: 72 hours
Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
The target is quite big here. Thus, we have to be very patient here with the price to hit our target. Meanwhile, we have to watch for the H4 candle to make the breakout first and then an H1 Bearish Engulfing candle to be produced right at the breakout level after the breakout. We do not have any high impact news event today. Thus, the signal could come at any time. However, I assume it might come at the New York opening hour.
courtesy 'forexstrategieswork'