Sell EURAUD Channel Breakout

The EUR/AUD pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a well-defined bearish channel pattern. This suggests a shift in momentum towards the downside and a higher likelihood of further declines in the coming minutes or hours.

Key Points:

Sell Entry: Consider entering a short position around the current price of 1.6620, positioned close to the breakout level. This offers an entry point near the perceived shift in momentum.

Target Levels: Initial bearish targets lie at the previous support levels within the channel, now acting as potential resistance zones: 1.6525 and 1.6479. Further downside targets could be determined using other technical analysis methods like Fibonacci retracements or extensions.

Stop-Loss: To manage risk, place a stop-loss order above the broken support line of the channel, ideally around 1.6660. This helps limit potential losses if the price unexpectedly reverses and breaks back upwards.

Thank you.

Trade active:

Stronger AUD: The Australian Dollar (AUD) has been strengthening recently, supported by rising commodity prices like iron ore and improving risk sentiment. This could put downward pressure on EUR/AUD.

Weaker Eurozone Data: CPI & Unemployment data released yesterday showed a slight contraction in service activity, raising concerns about the Eurozone economy. This could weaken the Euro (EUR).