2022-01-30 15:06:54
EURAUD | Perspective for the new week
https://www.tradingview.com/x/TlnkCEZ0/
Will the market risk appetite continue to take its toll on the ‘Aussie’ as a reversal setup evolves? The Euro continued to exhibit strength since November 2021 and a Breakout of Key level structure during last week trading session could be an avenue to look for buying opportunities in the coming week(s). Now, what are my expectations?
Tendency: Uptrend ( Bullish )
Structure: Breakout | Supply & Demand | Trendline | Reversal pattern ( Double Bottom )
Observation: i. It is no doubt that the overall perspective on this pair is bearish with the bearish trendline going as far as April 2020.
ii. However, since price tested A$1.535 in November 2021, the price has continued to finder higher lows which culminated in what looks like a successful breakout on the 26th of November 2021.
iii. Following this breakout, the price touched A$1.615 to respect the bearish trendline on the 2nd of December 2021.
iv. The bearish momentum following the touch of A$1.615 appears to have reduced as we continue to witness rejection of the A$1.56 area to confirm a Demand zone is mature.
v. And if we look closely, we will notice that the rejection within the demand zone shares a confluence that respects the new Bullish trendline to signal a possible reversal set-up.
vi. A visual representation of a trend after connecting a series of prices with a line drawn under pivot lows shows the prevailing direction and speed of price in the last 3 months.
vii . Now, the appearance of a Double Bottom within the identified Demand zone which also shares a confluence with the new trend describes a possible change in trend and a momentum reversal from prior leading price action with confirmation at Breakout of Key level (A$1.5800) which is also the neckline of the pattern.
vii . The early hours/days of the new week might see a drop in price into the key level to incite a Trend continuation.
viii. Hence, it is appropriate to state here that, above key level @ A$1.5800 remains the most comfortable place to open a long position with an opportunity to add to our existing position at a breakout/retest of A$1.59500 level... Trade consciously!
Trading plan: BUY confirmation with a minimum potential profit of 400 pips.
Risk/Reward: 1:3
Potential Duration: 5 to 12days
NB: This speculation may be considered to make individual decisions on lower timeframe.
Watch this space @nirvanaforex for updates as price action is been monitored.
#EURAUD
Disclaimer: https://t.me/nirvanaforex/1044
@nirvanaforex
...we do not chase the market; we wait for the market to send us her signal and we follow!
92 viewsMaster Sheriff, 12:06
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