EURAUD: Two Scenarios Explained

11 พ.ค. 2020

hey traders,

EURAUD is standing on a key daily/4H structure.

the price is clearly coiling right now and waiting for some trigger!

here we have two equally possible scenarios:

bullish - on focus will be a falling wedge pattern.
perfect confirmation to buy the pair is its breakout of resistance.
to not be caught by a false violation I would suggest letting the market break a horizontal 1.66 structure as well.
then buy on retest with your stop below the lower low within the wedge and targets: 1.6695 / 1.677

bearish - on focus will be a horizontal 1.654 structure.
perfect signal to sell is a 4H candle close below the underlined structure.
to avoid false breakout I would also let it close below the support of the wedge and then sell on retest.
best stop is above the last lower high within the wedge and target 1.642

good luck!