Hi Traders! EURAUD bearish convergence provides sell opportunity for us. A detailed analysis of this bearish setup is as follows:
EURAUD D1 Chart:
On the daily chart we have a critical zone that has formed based on the fibo level of the cycle and a resistance area. The price which was moving higher reached this critical zone and is currently moving lower. We may now look for evidences of bearish pressure on lower timeframes in order to join the bears.
EURAUD H4 Chart:
On the H4 chart we have a critical zone that has formed based on the fibo level of the cycle. The price which was moving higher reached this critical zone and is currently moving lower. We also have bearish divergence followed bearish convergence which we may consider as evidences of bearish pressure and currently it looks like a pullback is happening. If the price moves lower and breaks below the 1.61186 level, we may then start looking for more bearish evidences in order to join the bears.
Invalidation: This sell setup is valid until the invalidation level holds. If the price moves higher and breaks above the high shown in the screenshot then this sell setup will be invalidated.
Note: It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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