EURAUD long after reversal and break of resistance level
Last week, we've seen the reversal setup on EURAUD finally materialise. The bullish divergence (price made lower lows while RSI made higher lows) was another confirmation, but the rejection of the lower support level followed by the very bullish move up left little doubt.
On Wednesday, price already tested the resistance level (indicated by the black horizontal line) but initially rejected it. On Friday though, price broke finally through it and closed comfortably above.
There's still plenty of upside for the pair and depending on what happens Monday, good entry possibilities could be on a retrace to the resistance-turned-support. The first take profit level would be at a resistance zone at around 1.50600 (for a R:R of about 1:1.6) but further profit levels are definitely possible, up to the longer term resistance area at 1.55100.
Good luck trading!
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On Wednesday, price already tested the resistance level (indicated by the black horizontal line) but initially rejected it. On Friday though, price broke finally through it and closed comfortably above.
There's still plenty of upside for the pair and depending on what happens Monday, good entry possibilities could be on a retrace to the resistance-turned-support. The first take profit level would be at a resistance zone at around 1.50600 (for a R:R of about 1:1.6) but further profit levels are definitely possible, up to the longer term resistance area at 1.55100.
Good luck trading!
Please visit smartforexlearning.com and follow us:
- on Twitter: twitter.com/smartfxlearning
- on Facebook: www.facebook.com/smartforexlearning
- on Google+: plus.google.com/+Smartforexlearning