The Monthly and Daily direction is Bearish. The market has retraced, and been rejected at the Daily Senkou A (bottom of the cloud) at 1.5841 I anticipate the market will drop back to the cloud, either the Senkou A (top) or the Senkou B (bottom) and then rally back to retest the Senkou A at 1.5841
2 Potential entries;
First, the aggressive entry would be to place sell limit orders at the Senkou A with a 50 pip stop
Second, wait for the confirmation of the Cloud breakout trade
Nice idea on EURAUD and there may be bearish bias as you have you have identified. For our set up, we have identified the key resistance and support levels for the short term. The first resistance that we have identified is at 1.5876 (100% Fibonacci extension , 50% Fibonacci retracement , horizontal swing high resistance), which is above the resistance level that you have identified. Stochastic is approaching its resistance at 96% where a corresponding reversal could occur. If a reversal does occur, we may look at the 1.5750 support (61.8% Fibonacci retracement , horizontal swing low support), which is just above your 78.6% Fibonacci retracement support level.
Please have a look at our idea and share with us what you think.
AGold54
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@ICmarkets, I like it. Certainly more than 1 way to skin the FX cat :)
Jan_1
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I see pretty much the same also looks good on the 4h chart. Lets go and hunt some pips :-)
@AGold54, I have a fairly aggressive entry Short @ 1.5828 SL 1.5884 and TP of 1.5685 if it works it is going to be a long (time not position) trade if it works not sure if it will hit TP before I close everything on Friday before the X-mas break
AGold54
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@Jan_1, 143 pips it can certainly get there, especially considering there is a significant amount of news this week :)
Please have a look at our idea and share with us what you think.