Hi Traders! EURAUD critical zone provides bearish opportunity for us. A detailed analysis of this sell setup is as follows:
EURAUD D1 Chart:
On the daily chart the price which is moving higher has created a potential double wave up and currently the price is nearing the first critical zone based on the fibo levels. In addition to this we also have a potential bearish divergence that is forming at the moment which we may consider as an evidence of bearish pressure. We may now look for more 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 and currently the price which is moving higher is nearing this zone. In addition to this the price has also created a bearish divergence which we may consider as an evidence of bearish pressure. Once the price reaches the critical zone we may then start looking for bearish setups with bearish evidences in order to join the bears.
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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