EUR/AUD 1H – Bullish Divergence at Support
Divergence Setup
On the 1-hour EUR/AUD chart, price makes a lower low while the RSI indicator forms a higher low. This classic bullish divergence indicates weakening bearish momentum and a likely reversal. RSI is coming out of oversold territory, suggesting buyers are gaining strength near the bottom.
Support Zone Significance
The 1.7247 level is a well-tested horizontal support zone. Price has respected this zone on multiple swings, forming a base for a rebound. This strong support provides a logical entry area, since holding above it reinforces the divergence signal.
Entry & Stop-Loss
A buy entry was triggered at the support zone on confirmation of the bounce. The stop-loss is placed just below 1.7247 to protect against a breakdown. This keeps risk very small if the support fails.
Outlook / Target
The bias is bullish. A rally toward the 1.75–1.76 area (target zone) is expected, aligning with prior resistance. The risk-reward is favorable due to the tight stop versus the large upside target, supporting the bullish divergence thesis.
Divergence Setup
On the 1-hour EUR/AUD chart, price makes a lower low while the RSI indicator forms a higher low. This classic bullish divergence indicates weakening bearish momentum and a likely reversal. RSI is coming out of oversold territory, suggesting buyers are gaining strength near the bottom.
Support Zone Significance
The 1.7247 level is a well-tested horizontal support zone. Price has respected this zone on multiple swings, forming a base for a rebound. This strong support provides a logical entry area, since holding above it reinforces the divergence signal.
Entry & Stop-Loss
A buy entry was triggered at the support zone on confirmation of the bounce. The stop-loss is placed just below 1.7247 to protect against a breakdown. This keeps risk very small if the support fails.
Outlook / Target
The bias is bullish. A rally toward the 1.75–1.76 area (target zone) is expected, aligning with prior resistance. The risk-reward is favorable due to the tight stop versus the large upside target, supporting the bullish divergence thesis.
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.
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.