EURAUD had a long consolidation on the Day chart. Then, the price seemed to make a breakout towards the downside. However, the price did not go towards the South. In fact, it seems that the Daily chart is about to produce a Double Bottom at a very critical level of Support. The Double Top would be confirmed if we get a breakout at the Neckline of the Double Top. Let us have a look at the Daily EURAUD chart.
EURAUD Price Action Analysis – 22nd August 2018
The level of 1.56045 is the level of Support here. As we see, the price had an upward move towards the South from there, and then came back. After producing a Bullish Pinbar Daily candle, today’s Daily candle has been a very strong Bullish candle so far. This means a breakout at the level of 1.57320 would lead the price to go towards the level of 1.59400 in coming days. Let us have a look at the summary of the trade…
- Buy Stop Order: 1.57320
- Stop Loss: 1.56045
- Take Profit: 1.59400
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
We must remember that this trade setup is based on the Daily chart. It might take 4 to 5 trading days to hit the target. This means we might even have to leave the trade during the next weekend. In a word, we have to be extremely patient to achieve the target. Another thing, since it takes many pips to set the Stop loss, so the trading lot should be tinier than our usual trading lot.
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