The EURAUD cross in its hourly chart exposes an intraday upward sequence, which began at 1.60334, in where the price reacted mostly bullish, developing five internal moves that violated the descending trendline prevailing from the past week.
For the following trading sessions, we expect a limited retrace between levels 1.6177 and 1.6145, from where the price could find fresh buyers waiting to place their limit long positions.
Our bullish scenario considers the potential retrace until 1.6177 from where the price could find fresh buyers, which could allow us to incorporate in a new rally with a potential bullish target at 1.6394.
The bullish scenario will be invalid if the price plummets and closes below 1.6077.
Trading Plan Summary
- Entry Level: 1.6177
- Protective Stop: 1.6077
- Profit Target: 1.6394
- Risk/Reward Ratio: 2.1
- Position Size: 0.01 lot per $1,000 in trading account.