EURAUD POTENTIAL SHORT| MULTI TIMEFRAME ANALYSIS

As I have already mentioned, in my previous analysis of the pair, the link to which you can find below, there was a potential for returning into the massive diagonal channel, which can be seen on the daily chart attached.

The return into the channel was confirmed by the daily candle closing inside the channel, below the resistance area, which gives us a short opportunity.

Current 1.6846 level, is not a good one to go short in terms of risk reward, for I expect the pair to find support in the middle of the channel, at around the take2 area. The support line is shown in the blue. There is also a horizontal structure at this level.

So, I will be waiting for the pair to bounce back, from a small horizontal support it has found. To the levels that are indicated by the arrows.

You might choose to enter the short piecemeal, adding to the position as the pair goes higher. This way you will get a good average price.

The first take is 1:1 risk reward, as always. The second take level I've discussed above already.

I will be monitoring the price action closely.

On a side note, one might actually go long now, and ride the bounce up, to the short levels, but I will not be doing that.

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Wish you all luck in your trading!

Comment:

target2 reached!