Home Forex Market Analysis Forex Signals EUR/AUD Engulfing Pattern at the bottom of the channel

EUR/AUD Engulfing Pattern at the bottom of the channel

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EURAUD has been moving inside a slightly ascending channel. The last interaction of the price drove the pair to the bottom of the channel. On Monday afternoon, the price did a strong reversal on increased volume, confirmed by a second bullish candle. We see also that the MACD made a bullish transition, as the RSI reversed from the 30 level.

A bullish setup can be created with entry at the current levels and target at the top of the channel, and stop-loss below the last lows.

Main levels:

  • Buy order: 1.67777
  • Stop-loss: 1.67017
  • Take-Profit: 1.69037

Reward/Risk: 1.66

Risk:76 pips, or $491 per lot, 49,1 per mini-lot, and 4.91 per micro-lot

Reward: 126 pips, or  $816 per lot, 81.6 per mini-lot, and 8.16 per micro-lot.

A knowledgeable trader will invest no more than 2 percent of its funds in a trade. A rookie trader should start less, no more than 1 percent. That means five micro-lots every $1,000 in the trading account.

 

 

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