EURAUD: range setup opportunity, big move in sight!
All right, I've been watching EURAUD ranging since the beginning of the month.. it seems like we are almost ready for a break move!
Indeed, BBW is shrinking like a felted woolen sweater, which usually means some big move is about to show up.
On the other hand, some gentle hint of divergence on both RSI and StochRSI tell us to put out the feelers, while StochRSI itself is sinking in oversold area.
So.. now what?!
Oscillators seem to anticipate an upward move, but resistance level is quite strong.
My plan: keep watching closely resistance and support levels, chances are we'll see a break move when BBW grows again!
Entry levels:
LONG - Above 1.5800 with BBW expanding, target 1.6000 and SL 1.5700
SHORT - Below 1.5600 with BBW expanding, target 1.5450 and SL 1.5750
Indeed, BBW is shrinking like a felted woolen sweater, which usually means some big move is about to show up.
On the other hand, some gentle hint of divergence on both RSI and StochRSI tell us to put out the feelers, while StochRSI itself is sinking in oversold area.
So.. now what?!
Oscillators seem to anticipate an upward move, but resistance level is quite strong.
My plan: keep watching closely resistance and support levels, chances are we'll see a break move when BBW grows again!
Entry levels:
LONG - Above 1.5800 with BBW expanding, target 1.6000 and SL 1.5700
SHORT - Below 1.5600 with BBW expanding, target 1.5450 and SL 1.5750
Comment:
It's happening: BREAKOUT !!
Oh my gosh.. seems like we went so close to meet the LONG setup!
Indeed, price action went up to 1.58 level - BUT -
1. No breakout occurred.. that's what I call a tough resistance level!
2. BBW still not expanding
Now, BBW is indeed shrinking at a lower rate than before, sooooo.. one of the following scenarios might take place (or should I say "scenarii"?):
A. We all grow old waiting for some action to take place, with BBW stable at dead boring low levels (yeah.. but how long can it last?)
B. We finally behold some BBW expanding again, which means high chance of a sustained breakout/breakdown
..Stay tuned!