EUR/AUD 4-Hour Chart: Comprehensive Bearish Setup Analysis
Technical Analysis Tools and Signals
1. Descending Trend Line
Yellow descending trend line indicating strong bearish momentum
Multiple touch points confirm the trend line's significance
Price consistently rejected at or near this trend line
Clear indication of sustained downward pressure
2. Consolidation and Rejection
Green support zone representing a consolidation period
Price failed to break above previous resistance levels
Consolidation suggests exhaustion of bullish momentum
Tight range formation preceding the potential breakdown
3. Bearish Breakdown Characteristics
Sharp, decisive red candles breaking below support levels
Significant volume implied by long red candles
Breakdown indicates strong bearish sentiment
Breaks through previous support zones with conviction
4. Support and Resistance Levels
Horizontal green and red lines marking key price levels
Critical support zone around 1.7125 recently broken
Multiple resistance levels at higher price points
Clear, well-defined support and resistance zones
5. Potential Trade Setup Parameters
Entry point: Breakdown of support level
Stop loss: Potentially placed above the recent consolidation zone
Initial target: Next support level around 1.6400
Attractive risk-to-reward ratio evident
Confirmation Signals
Descending trend line resistance
Clear rejection at higher levels
Strong bearish breakdown candles
Broken support levels
Momentum indication through candle structure
Risk Management Note: Always use proper risk management techniques and consider fundamental factors alongside technical analysis.
Technical Analysis Tools and Signals
1. Descending Trend Line
Yellow descending trend line indicating strong bearish momentum
Multiple touch points confirm the trend line's significance
Price consistently rejected at or near this trend line
Clear indication of sustained downward pressure
2. Consolidation and Rejection
Green support zone representing a consolidation period
Price failed to break above previous resistance levels
Consolidation suggests exhaustion of bullish momentum
Tight range formation preceding the potential breakdown
3. Bearish Breakdown Characteristics
Sharp, decisive red candles breaking below support levels
Significant volume implied by long red candles
Breakdown indicates strong bearish sentiment
Breaks through previous support zones with conviction
4. Support and Resistance Levels
Horizontal green and red lines marking key price levels
Critical support zone around 1.7125 recently broken
Multiple resistance levels at higher price points
Clear, well-defined support and resistance zones
5. Potential Trade Setup Parameters
Entry point: Breakdown of support level
Stop loss: Potentially placed above the recent consolidation zone
Initial target: Next support level around 1.6400
Attractive risk-to-reward ratio evident
Confirmation Signals
Descending trend line resistance
Clear rejection at higher levels
Strong bearish breakdown candles
Broken support levels
Momentum indication through candle structure
Risk Management Note: Always use proper risk management techniques and consider fundamental factors alongside technical analysis.
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Related publications
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.
For Training visit.
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Website wave-trader.com
Website techtradingacademy.com
Slack: wavetraders.slack.com
Telegram: t.me/Wavetraders
X: twitter.com/Wave__Trader
FB: facebook.com/WTimran
Related publications
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.