HOW TO ANALYSE A CHART: EURAUD 4H SHORT

Firstly, I have marked the range of last week being from 1.54750 to 1.52700 (Highlighted in pink), a 200 pips range. As the new week is about to start in a few hours, this coming week can remain in this range or break out of it, which doesn't matter because money can be made either way. Last week we saw price pushing into the lows, making a lower low into 1.5200 which is a weekly level. The week ended with price visiting the demand zone/level of 1.53800, where we saw a rejection of that level creating a bearish pin bar followed by an engulfing candle, what seems like an evening star formation. Immediately price re-visited that level again, rejecting it again. So now we have a 4 hour range between 1.53800 and 1.53450. What we look for now as the week starts, having a bearish bias in mind, we want a break below and retest of 1.53450 to take a short into 1.52000 or even lower. Failure of this, would mean a break above and retest of 1.53800 which would see price going back to last week's high of 1.54750, which would be a long opportunity. In either situation, money can be made, simply from last week's range. Better entries and more clearer price action can be seen on the lower timeframes. Trading is a patience game. Even with a bias, don't get married to it. Observe what price is doing and react to it.

Comment:

The deeper the pair retraces back into the highs, the better the risk reward, my short currently triggered at 1.53971. First Target 1.57200. Second target 1.57150

Trade closed: stop reached:

Alternative long that was discussed on the analysis was eventually the winner here. Price action in the daily should have been analyzed deeper and such a move would have been anticipated.