EURAUD long on break and retest
Updated
Good afternoon traders!
Today I am looking at a potential long opportunity building on EURAUD.
Why long from here
On Thursday we impulsively moved away from daily support (the bottom of a flat-ish channel). We then created what appears to be a bull flag against a level of resistance turned support. Yes, we are trading below the level but we are moving correctively, indicating we may be able to make a push higher. There is also a new level of support we are holding that was set by the low created on Friday, along with 2 sets of divergence. I will be looking for a break and retest of the 50 EMA on the 15 minute to look for a potential entry before the break of structure with my stop loss set at the more recent lows. The target is the previous highs, I will be looking to trail my stop.
Today I am looking at a potential long opportunity building on EURAUD.
Why long from here
On Thursday we impulsively moved away from daily support (the bottom of a flat-ish channel). We then created what appears to be a bull flag against a level of resistance turned support. Yes, we are trading below the level but we are moving correctively, indicating we may be able to make a push higher. There is also a new level of support we are holding that was set by the low created on Friday, along with 2 sets of divergence. I will be looking for a break and retest of the 50 EMA on the 15 minute to look for a potential entry before the break of structure with my stop loss set at the more recent lows. The target is the previous highs, I will be looking to trail my stop.
Note
We got a nice push down off the 21 EMA, invalidating the long idea for me, for now.
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