The EURAUD currency pair has recently entered into the bearish market zone on the 4-hour timeframe, which also coincides with the resistance level on the M30 channel. This has occurred following a substantial increase in value during Friday's trading session which we also captured.
Currently, there are two potential outcomes for the market:
1. The price may reject the minor trendline and move upwards towards the 1.57031 region, to test the channel resistance level once again, before eventually dropping.
2. Alternatively, the price may break the minor trendline in a downward direction and continue its bearish trend.
In both scenarios, my bias is bearish. I anticipate a break and retest of the minor trendline towards the 1.56725 region, which will serve as my entry confirmation for the second scenario.
Given the current overall bullish trend, it is prudent for me to exercise moderation in pips targets, as it is plausible that the market maker may contemplate the continuation of the bullish trend. So, my objective for a scalp trade is to reach the 1.56395 price level, while my target for a day trade is the 200EMA region.
Currently, there are two potential outcomes for the market:
1. The price may reject the minor trendline and move upwards towards the 1.57031 region, to test the channel resistance level once again, before eventually dropping.
2. Alternatively, the price may break the minor trendline in a downward direction and continue its bearish trend.
In both scenarios, my bias is bearish. I anticipate a break and retest of the minor trendline towards the 1.56725 region, which will serve as my entry confirmation for the second scenario.
Given the current overall bullish trend, it is prudent for me to exercise moderation in pips targets, as it is plausible that the market maker may contemplate the continuation of the bullish trend. So, my objective for a scalp trade is to reach the 1.56395 price level, while my target for a day trade is the 200EMA region.