EURAUD: Short Trades from Resistance Zone

The price reached the strong resistance zone formed by SMA200 and 1.66000 resistance level in the daily chart. It means that in the hourly timeframes we should search for possible reversal signals for shoring.

Here is the 1H chart we have a bearish divergence as a trend reversal signal. After a pullback to the resistance zone, we have a good entry point for short trades.
We can open short trades below 1.65635 with stop orders above 1.66135 resistance. The profit target should be SMA200.
Risk per trade must be no more than 2% of the capital.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.

Comment:

Move the stop to the breakeven!