The chart below of the EURAUD pair is currently trending to the down side making lower lows and lower highs. The pair has been trending lower since it topped out on March 19 2020. If looking to trade EURAUD, traders should be patient and wait for price to push higher. Waiting for price to push higher above the equilibrium level (Light Blue) and into the premium sell zone (Green) will give the trade a better risk to reward setup. We expect the July 1 2022 high to hold and for price to reverse lower on a push higher. When price starts to enter the possible SELL levels (Brown Lines) in the premium zone, traders should switch to lower time frames, like the 1 Hour or 15 Minute chart, to refine a better entry and tighter stop loss. Traders can also use the 1.54 handle/psychological level as a stop loss or a soft stop/mental stop if can’t find a tighter stop. If price breaks below the July 22 2022 low before pushing higher then will need to wait to see how much lower it goes to re-evaluate the premium/discount zone and equilibrium level. Only time will tell what EURAUD will do but for the meantime we expect more downside as long as price remains below the 1.54 handle.
EURAUD Daily Chart July 22 2022
A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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