EURAUD after having a consolidation on the daily chart seems to be bearish. The H4 chart shows that the price has had a correction and reacted at the breakout level. The last H4 candle came out as a bearish engulfing candle which was produced right at the flip over resistance level. The sellers shall have to wait for a breakout at the lowest low followed by a pullback to go short on the pair. Let us have a look at the H4 EURAUD chart. For more trade ideas, join the Price Action Society...

The level of 1.64000 is working as the level of resistance here. On the other hand, the level of 1.63140 is the lowest low of the wave. If the current candle makes a breakout at the lowest low, the sellers shall wait for the following H4 candle to be closed within the breakout candle. If that happens, then an H1 bearish engulfing candle would be the signal to go short on EURAUD. Let us have a look at the summary of the trade

• Sell Stop Order: 1.63056
• Stop Loss: 1.64147
• Take Profit: 1.61174

The pullback’s duration should be at least four hours after the breakout candle. This means we shall wait for the following H4 candle to be an inside bar. This is a crucial point which must not be ignored. Especially, if the price does not go up to the breakout level, traders must wait for an inside bar after a breakout. For more trade ideas, join the Price Action Society... If you like our analysis and would like to receive 3 to 7 trade ideas per day, then click here to learn more about Price Action Society.