EURAUD Short Opportunity: Rejection Below 1.6200
Updated
The EURAUD pair has shown signs of rejection near the key resistance levels, with the price now retreating toward 1.6196. Here's the revised analysis:
Current Price Action:
The pair is trading below the 1.6200 level, indicating the resistance zone around 1.6300–1.6340 remains intact.
Bearish momentum appears to be resuming as price starts pulling back.
Indicators:
The Stochastic RSI is reversing from overbought territory, suggesting downside potential.
EMA alignment confirms bearish bias, with the price below the 50 and 200 EMAs.
Entry Point:
A sell position can be considered around 1.6190–1.6200, with confirmation of further downside (e.g., bearish candlestick).
Stop Loss:
Place the stop loss above 1.6230 to allow room for minor fluctuations.
Take Profit:
Target 1: 1.6125 (recent support zone).
Target 2: 1.6070 (lower support level).
Risk-Reward Ratio:
This trade offers a good risk-reward setup, with a potential downside move of ~60 pips compared to a 30-pip risk.
If the price breaks back above 1.6230, the bearish outlook will be invalidated. Monitor price action carefully for confirmation.
Current Price Action:
The pair is trading below the 1.6200 level, indicating the resistance zone around 1.6300–1.6340 remains intact.
Bearish momentum appears to be resuming as price starts pulling back.
Indicators:
The Stochastic RSI is reversing from overbought territory, suggesting downside potential.
EMA alignment confirms bearish bias, with the price below the 50 and 200 EMAs.
Entry Point:
A sell position can be considered around 1.6190–1.6200, with confirmation of further downside (e.g., bearish candlestick).
Stop Loss:
Place the stop loss above 1.6230 to allow room for minor fluctuations.
Take Profit:
Target 1: 1.6125 (recent support zone).
Target 2: 1.6070 (lower support level).
Risk-Reward Ratio:
This trade offers a good risk-reward setup, with a potential downside move of ~60 pips compared to a 30-pip risk.
If the price breaks back above 1.6230, the bearish outlook will be invalidated. Monitor price action carefully for confirmation.
Trade active
Trade closed: stop reached
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