EURAUD: The Price Reached The Support! How to Trade?
Euro Fx/Australian Dollar FX:EURAUD
The price reached the support zone between 1.61000 and 1.60000 levels. This zone also includes SMA200 and the uptrend line, and it looks very solid. The price action here will be able to provide interesting trading opportunities based on the daily and hourly timeframes.
The market can bounce, and we have the following signals confirming it:
– the reversal candlestick pattern
– RSI confirms the price reversal
– MACD histogram will confirm the reversal too if the close price of the daily candle will be at the current levels or higher.
For trading based on the daily chart , we should wait for a bullish candle and buy after that. Stop orders must be placed below the support zone . Profit targets will be placed at the resistance levels.
As for trading based on lower timeframes, I will post a new trading idea showing you possible trading opportunities.
P.S. This post is not financial advice. You should make your own research and trade based on your plan. This post can be used as additional information and for understanding the principles of trading.
Source: TW DLavrov