EURAUD – BUY STOP – 13th January 2021

EURAUD – BUY STOP – 13th January 2021 (Closed)

Good evening team,

In our second setup we are taking a look at the EURAUD. We may have position slightly early on the pair in telegram last week. The technicals still suggest a possible reversal opportunity is coming in the near future and we are looking to capitalise on that move.

EURAUD – Weekly Charts

We are approaching a historic supple zone on the EURAUD, this zone has provided support and resistance on many occasions over the past 25 years. This suggests we could see a bounce in this area.

EURAUD – 4 Hour charts

The RSI is creeping higher on lower price action, this tells us sellers are running out of steam creating a bullish divergence.

Price action is also thinning inside a falling wedge formation.

EURAUD – 1 Hour Charts

Trade Setup: BUY Stop – Entry price 1.5750, stop loss 1.5685, take profit 1.5860.

Stop loss: 65 pips

Take profit: 110 pips

If the market breaks to the downside of the wedge this setup becomes invalid and we will close the position.

Trade Setup
BUY STOP

Entry
1.5750

Take Profit
1.5860

Stop Loss
1.5685