Hi Traders! EURAUD channel provides bearish opportunity for us. A detailed analysis of this sell setup is as follows:
EURUAD D1 Chart:
On the daily chart the price is moving inside a channel, this channel is formed by the highs and lows reaching parallel resistance and support zones. The price which is respecting these two zones so far has currently reached below the middle of this channel and it still has room lower towards the bottom of it. We may now start looking for bearish evidences on lower timeframes in order to join the bears.
EURAUD H4 Chart:
On the H4 chart the price which was moving lower has created a double wave down and currently it looks like this double wave has completed itself and a retrace is happening towards the 38.2% fibo retrace zone. We may now start looking for bearish setups with bearish evidences on lower timeframes in order to join the bears.
EURAUD H1 Chart:
On the H1 chart the price which is moving higher has reached the first critical zone, in addition to this we also have a bearish divergence that has formed which we may consider as an evidence of bearish pressure. Until this critical zone holds we may look for bearish setups with more bearish evidences in order to join the bears. Alternatively if the price moves higher then the next area to look for bearish setups with bearish evidences in order to start looking for the sells would be the second critical zone.
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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