EURAUD Near Good Level To Buy
Updated
EURAUD is currently approaching an optimal level to buy. After the recent breakout from the upper channel as seen from the trendlines I have drawn, the price is now retracing back to it. I believe that once prices return to the upper channel resistance level , there will be a second wave of bullish movement towards the upside. Furthermore, this is supported by a hidden bullish divergence that is now present on the MACD Crossover. On top of this, the entry level is also near a strong support zone .
As such, once prices arrive at 1.62402, I will be entering a long position for EURAUD .
Stop-loss will be at 1.61811. The reason is because if prices arrive at 1.61811, it will mean 2 things. 1) The hidden bullish divergence is invalidated 2) The support zone is broken. As such, this is an optimal stop-loss level. However, for more risk-averse traders, a better stop-loss could at a higher level when the hidden bullish divergence is invalidated. This is up to the traders' preference.
Take-profit level will be at 1.64032. This is at the level where during the previous wave of bullish movement, prices were rejected from. As usual, if prices were to reach >25%-30% of the targeted take profit, stop-loss will be moved to entry and a trailing stop-loss will be utilized.
If you agree with this trade, do give it a huge thumbs up! :)
As such, once prices arrive at 1.62402, I will be entering a long position for EURAUD .
Stop-loss will be at 1.61811. The reason is because if prices arrive at 1.61811, it will mean 2 things. 1) The hidden bullish divergence is invalidated 2) The support zone is broken. As such, this is an optimal stop-loss level. However, for more risk-averse traders, a better stop-loss could at a higher level when the hidden bullish divergence is invalidated. This is up to the traders' preference.
Take-profit level will be at 1.64032. This is at the level where during the previous wave of bullish movement, prices were rejected from. As usual, if prices were to reach >25%-30% of the targeted take profit, stop-loss will be moved to entry and a trailing stop-loss will be utilized.
If you agree with this trade, do give it a huge thumbs up! :)
Note
After touching the 200 EMA (not shown on this chart) on the H1 timeframe, prices moved towards the upside. This is much earlier than I've expected. A "W" pattern is also in the midst of its formation as well. As such, we will be canceling this trading idea and wait for another trading opportunity.
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