EUR/AUD produced an Evening Star in the daily chart. Yesterday’s candle came out as a bearish engulfing candle. The H4 chart shows that the price has been in consolidation. If the resistance level of consolidation ends up producing a bearish reversal candle followed by a breakout at consolidation support, the sellers may go short in the pair and drive the price towards the downside. Let us have a look at the H4-EUR/AUD chart.
Chart 1 EUR/AUD H4 Chart
The chart shows that the price after being bullish had a bounce at the level of 1.64360. Since then it has been roaming around within 1.64360-1.64700. The price has been bullish in the current H4 candle as of writing. If the level of resistance ends up producing a bearish reversal candle, the sellers may go short below the level of 1.64360.
Trade Summary:
Entry: Sell below 1.64360
Stop Loss: Above 1.64700
Take Profit 1: 1.64050
Take Profit 2: 1.63850
Take Profit 3: 1.63500