EURAUD Short Opportunity: Rejection Below 1.6200
The EURAUD pair has shown signs of rejection near the key resistance levels, with the price now retreating toward 1.6196. Here's the revised analysis:
Current Price Action:
The pair is trading below the 1.6200 level, indicating the resistance zone around 1.6300–1.6340 remains intact.
Bearish momentum appears to be resuming as price starts pulling back.
Indicators:
The Stochastic RSI is reversing from overbought territory, suggesting downside potential.
EMA alignment confirms bearish bias, with the price below the 50 and 200 EMAs.
Entry Point:
A sell position can be considered around 1.6190–1.6200, with confirmation of further downside (e.g., bearish candlestick).
Stop Loss:
Place the stop loss above 1.6230 to allow room for minor fluctuations.
Take Profit:
Target 1: 1.6125 (recent support zone).
Target 2: 1.6070 (lower support level).
Risk-Reward Ratio:
This trade offers a good risk-reward setup, with a potential downside move of ~60 pips compared to a 30-pip risk.
If the price breaks back above 1.6230, the bearish outlook will be invalidated. Monitor price action carefully for confirmation.
Current Price Action:
The pair is trading below the 1.6200 level, indicating the resistance zone around 1.6300–1.6340 remains intact.
Bearish momentum appears to be resuming as price starts pulling back.
Indicators:
The Stochastic RSI is reversing from overbought territory, suggesting downside potential.
EMA alignment confirms bearish bias, with the price below the 50 and 200 EMAs.
Entry Point:
A sell position can be considered around 1.6190–1.6200, with confirmation of further downside (e.g., bearish candlestick).
Stop Loss:
Place the stop loss above 1.6230 to allow room for minor fluctuations.
Take Profit:
Target 1: 1.6125 (recent support zone).
Target 2: 1.6070 (lower support level).
Risk-Reward Ratio:
This trade offers a good risk-reward setup, with a potential downside move of ~60 pips compared to a 30-pip risk.
If the price breaks back above 1.6230, the bearish outlook will be invalidated. Monitor price action carefully for confirmation.
Trade active
Trade closed: stop reached
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.