EURAUD
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Classic bearish setup
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Our team expects retracement
SUGGESTED TRADE:
Swing Trade
Sell EURAUD
Entry Point - 1.63469
Stop Loss - 1.64113
Take Profit - 1.62510
Our Risk - 1%
Please provide feedback below, and our team will review them.
According to Swing Theory, as evidenced by the LL, LH, HL, and HH patterns illustrated in the above big picture, EURAUD is on a clearly bullish trajectory. The Swing Low at 1.60300 should serve as a major support level.
Two weeks ago, the EURAUD currency pair experienced lackluster performance. However, the current week ended with the price forming a Swing Low support at 1.60300 and breaching the Swing High resistance at 1.62100 for the second time.
On closer scrutiny of the current blue MACD bullish histogram, there are two peaks, with the second peak (0.004050) higher than the first peak (0.002252). This suggests that bullish momentum may still be intact. Unless the MACD turns gray with a third peak lower than the second peak, a retracement trade is not recommended.
On April 5th, 2023, at 08:00hr, the price breached the immediate swing high resistance at 1.63200. However, the move was short-lived and quickly retraced, interestingly finding support at the previous swing high resistance at 1.62100.
On April 6th, 2023, at 12:00hr, the price breached the immediate swing high resistance (1.63200) for a second time. Although the price subsequently moved sideways, it managed to end the week hovering just above the immediate swing high resistance (1.63200).
In conclusion, based on my impression, it appears that the current week’s market is experiencing an expansionary phase, as compared to two weeks ago when the market was in a contractionary phase. The expansionary and contractionary phases can be clearly visualized using a set of Bollinger Bands. In an expansionary phase, prices can be quite volatile. Given the intact bullish momentum, there is a higher chance of a trend continuation toward the upside than experiencing a pullback in the following week.
I hope you find my analysis useful, Robinhood.
Warmest regards,
Alphahavoc
1 Like
There we go, just like I predicted: a trend continuation. Currently at 0.002770, the MACD is forming a peak lower than the highest peak I mentioned earlier. Only after encountering resistance with a MACD peak lower than the previous highest peak, would a pullback become more likely. However, the price peak is still the GOLD standard. If the price were to swing and form a lower high, it would be even more convincing for a retracement or reversal even.
