EURAUD produced an engulfing daily candle last Friday. The H4 chart shows that the price after being extremely bearish may have found its support. The price had its last bounce at the same level. Thus, it may consolidate here. If it produces an H4 bearish reversal candle followed by a breakout at Friday’s lowest low, the sellers may go short on the pair to grab some green pips.
This trade idea was generated by our powerful Elite Swing Trader System.
The H4 chart shows that the price has had a bounce at the level of 1.62150. As of writing, the last H4 candle is not finished yet. If the level holds the price as support and the price consolidates here, the level of 1.62395 may hold the price as resistance. An H4 bearish reversal candle at the level of 1.62395 followed by an H1 breakout at 1.62150 may drive the price towards the level of 1.61500 with good bearish momentum. Let us have a look at the summary of the trade…
- Sell Stop Order: 1.62104
- Stop Loss: 1.62387
- Take Profit: 1.61654
The price may find its support at 1.60000 on the daily chart. This means there is enough space for the price to travel towards the downside. However, the H4 support is Double Bottom support, which needs extreme intraday bearish pressure to be broken. If the price breaks the level on the H4 chart as well, most likely the pair is going to head towards the South for a few days. Let us wait and see what happens next.
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