EURAUD 4 HR | Bearish ContinuationGBPAUD could fall 225 pips if it can stay below 1.65699.
Why 1.65699?
Let's just round it and say $1.657 Australian dollar. The price for the EURO is decreasing which means Australians are able to buy the Euro at a cheaper price.
Evidence
High(H) & Low(L)
Per the 4 our timeframe, price is declining. The current falling price of the Euro price per the Australian Dollar has been 1.65700(H), 1.62723(L), 1.65699(H), 1.64281(L).
We can see the high and low prices are decreasing hence what is called LOWER LOWs and LOWER HIGHs.
Actions
The best action to take is to sell since currently the trend is down. That is what the chart per this timeframe is showing.
The best price to sell below as stated above is 1.65699. The entry price is between 1.65350 and 1.65699. This range equates to 35 pips.
This means if you enter at market order, you can wait for price to enter the range and provide evidence price can decrease.
Or, if you set a pending order , you can set a pending order at 1.65350 with a TP down to the low or further.
Why do I believe price can fall 225 pips? This is a Reward to risk drop from the pending order price of 1.65350 based on my stop loss placement.
Sidenote:
Your Reward to Risk will vary from mine analyzing this trade using your own risk management strategy and trading plan.
What can invalidate this trade?
If price pushes higher than 1.65699, showing evidence buyers have taken control, the trade in invalidated.
What would this mean?
If you entered the trade and price went higher than 1.65699 you'd be stopped out. However, if price were to continue lower without pushing past the highs, you'd be in profit.
Should you trade this?
If this fits how you trade, yes.
If not no.
Let's keep it that simple.
I hope you enjoyed this analysis.
Like this post and share it if you did.😁
Many blessings,
Shaquan
