EUR/AUD Daily Price Forecast – 17th March 2025

EUR/AUD Daily Price Forecast – 17th March 2025

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Trade Summary:

EURAUD
Sell Stop @ 1.71467
TP @ 1.70613
SL @ 1.73215

EUR/AUD Technical Analysis

Timeframe: H4 (4-Hour Chart)

The chart provided shows a clear setup for a potential short trade on the EUR/AUD currency pair. Below is a detailed breakdown of the analysis:

1. Trend Analysis

• Recent Trend: The pair has been in a strong uptrend for a significant period, as evidenced by the consistent higher highs and higher lows. However, the recent price action indicates a potential trend reversal or correction.

• Current Momentum: The price has broken below the short-term moving averages (yellow and green lines), signaling weakening bullish momentum. The red moving average (likely a longer-term MA) is acting as a dynamic support.

2. Key Levels

• Sell Stop @ 1.71467: This level is strategically placed below the recent support zone, indicating a bearish breakout confirmation.

• Stop Loss (SL) @ 1.73215: The stop loss is placed above a significant resistance level, ensuring protection against false breakouts.

• Take Profit (TP) @ 1.70613: The take-profit level is set near a previous support zone, aligning with the risk-reward ratio.

3. Moving Averages

• The chart shows three moving averages:

  • Green Line: Likely a short-term moving average (e.g., 10 or 20-period). The price has decisively broken below this line, indicating bearish pressure.

  • Yellow Line: A medium-term moving average (e.g., 50-period). The price is trading below this as well, further confirming bearish momentum.

  • Red Line: A long-term moving average (e.g., 100 or 200-period). The price is approaching this level, which could act as a dynamic support.

4. Candlestick Patterns

• The recent candlesticks show lower highs and lower lows, indicating bearish sentiment.

• The bearish momentum is confirmed by the strong red candles breaking below the support zone.

5. Risk-Reward Ratio

• Risk: The distance between the entry (Sell Stop @ 1.71467) and the Stop Loss (SL @ 1.73215) is approximately 175 pips.

• Reward: The distance between the entry and the Take Profit (TP @ 1.70613) is approximately 85 pips.

• The risk-reward ratio is slightly unfavorable (approximately 1:0.5), but the setup could still be valid if the trader expects strong bearish momentum.

6. Indicators

• While no specific indicators are shown on the chart, the moving averages and price action suggest bearish momentum.

• Additional confirmation from oscillators like RSI or MACD could strengthen the bearish bias.

7. Trade Setup Summary

• Entry: Sell Stop @ 1.71467

• Stop Loss: 1.73215

• Take Profit: 1.70613

• Bias: Bearish

• Confirmation: Break below support and moving averages.

8. Potential Scenarios

• Bearish Breakout: If the price breaks below 1.71467, it is likely to continue toward the TP at 1.70613.

• Reversal: If the price fails to break below 1.71467 and moves above 1.73215, the bearish setup will be invalidated, and the uptrend may resume.

Conclusion

The EUR/AUD pair is showing signs of a potential bearish correction or reversal. The trade setup aligns with the technical analysis, but traders should monitor the price action closely for confirmation of the breakout. Additionally, external factors such as economic data or news events could impact the pair’s movement.

Recommended Lot Size

Trading is all about statistics.

While we can experience winning streaks, we can also suffer from losing streaks.

As such, we should always size each trade to withstand losing streaks (if any).

It’s widely recommended that you should not risk more than 2% of your capital for each trade.

We believe it’s easier to control your lot size by limiting your lot sizing to 0.01 for every $500 in your account.

So if you have $5000, then risk no more than 0.10 lot size per trade.

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If you spot a mistake especially when it comes to the price, please use common sense and check the chart.

We wish you good luck and good profit for this trade idea.

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