The EURAUD has corrected from its recent highs as visible in this H4 chart and currently trades around its support level. The declining resistance level is enforced by its 50 DMA and has formed a triangle formation. We believe this pair will launch a micro-rally into its 50 DMA.
MACD has showed improvement, but remains in bearish territory. A centerline crossover should fuel the rally into a breakout of its formation. RSI trades in neutral level close to oversold territory. Watch out for the RSI to reach overbought territory during the rally.
We recommend placing a buy limit order at 1.2900 with a potential second entry level at 1.2825. Should this pair breakdown below the 1.2850 level we recommend placing a stop sell order before committing new long trades to this pair.
Traders who wish to exit this trade at a loss should place their stop loss level at 1.2850. We do not use stop loss levels and will execute this trade as recommended. Place your take profit level at 1.2960.
