Bullish Breakout & Pullback Strategy on EUR/AUD – Targeting 1.84

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🔍 Technical Pattern & Trend

The price is moving within a rising channel (indicated by two parallel blue trend lines).

Price action has been respecting this upward trend since mid-May, forming higher highs and higher lows.

Recently, there's been a bullish breakout above a consolidation zone (blue rectangle), which suggests continuation of the uptrend.

🎯 Trade Setup

🟦 Entry Zone (Blue Box)

Entry Point: Around 1.76800

This is just above the recent consolidation and within the current uptrend support.

The price is expected to pull back to this level before continuing higher.

🟧 Stop Loss (Orange Box)

Stop Loss Level: Around 1.75525 – 1.76368

Placed below the lower boundary of the consolidation zone and just under the channel support.

This accounts for potential false breakouts or minor corrections.

🟩 Target (Green Box)

Target Point: 1.84000

This aligns with the projected measured move from the breakout of the consolidation area and top resistance zone.

Represents a strong reward-to-risk ratio.

📈 Key Indicators

EMA (70-period): Currently at 1.76368, confirming bullish momentum as price is above this level.

The moving average acts as dynamic support in this trend.

⚠️ Risk/Reward

Risk: Approx. 120 pips (1.76800 to 1.75525)

Reward: Approx. 720 pips (1.76800 to 1.84000)

Reward-to-Risk Ratio: ~6:1, which is favorable for swing trading setups.

✅ Summary

Bias: Bullish

Trade Idea: Buy on dip at 1.76800

Target: 1.84000

Stop Loss: Below 1.75525

Confirmation Needed: Pullback and hold at entry zone or bullish candlestick formation at that level.

Disclaimer

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