EURAUD BEARISH 100PIPSBearish Forecast (100 pips)
Trend Analysis: A bearish forecast suggests that you expect the price of EURAUD to decline. This could be based on a technical setup, such as a clear downtrend or price action indicating weakness in the euro or strength in the Australian dollar.
Resistance Levels: You might have identified resistance levels or technical patterns (like a head and shoulders, bearish flag, or a rejection at a key moving average) that point to a potential downward move.
Target (100 pips): You're aiming for a price move of 100 pips from your entry point, which could be based on a calculated move or previous price swings in a similar range.
20 Pip Stop Loss
Risk Management: A 20-pip stop loss is relatively tight, which indicates you're trying to limit your downside risk in case the market doesn't move in your predicted direction.
Risk-to-Reward: If you're targeting 100 pips with a 20-pip stop loss, that gives you a 5:1 risk-to-reward ratio. For every 1 pip of risk, you're aiming for 5 pips in reward, which is a favorable risk profile for your trade.
Volatility Consideration: EURAUD can sometimes be volatile, so it's important to ensure that the stop loss is placed at a reasonable level where price action can fluctuate without triggering you prematurely. You’ll want to place the stop loss just above a key resistance level or swing high that could be a logical invalidation point for your bearish view.
