EURAUD is an uptrend and we will be looking for the bullish continuation setup at the major support levels. EURO has been gaining traction due to its ECB quantitative easing program and curbing the pandemic.

- Market structure: Market structure on EURAUD is still bullish and seems to be continuing its direction. Major support levels lays at the 1.5970 where we would be looking to go long. Our target will be 1.1600 at the resistance.

- Trendline: We currently have an ascending trendline which needs to be tested at the support area. At the support area, we see a confluence of the trendline retest. Until unless the candles have opened and closed below this trendline after breakout out for sells, the buys remain valid.

- Retracement: The golden retracement level of 75-78.6% remains in confluence with the support area. This retracement has remained untested before and will this tapping at the level, we may witness the price surging.

- EMA's: Both EMA’s are bullish, above the current prices. EMA 50 has been pierced earlier and has already been tested once. EMA 200 has been below the prices for almost a month and has been tested several times after the break. What we now anticipate is another retest of the EMA 200 at the support level which may add to another confirmation for the catalyst to surge up.

- RSI/CCI: Both oscillators are neutral right now, resting at the 50 and 0 levels respectively. The oscillators need to break towards the buy region to continue going up. At the support level, we may see both the oscillators being at the bearish region. From that point onwards, we will wait for the oscillators to turn bullish into the region.

The trade setup on EURAUD is in continuation with the trend. When aligned with the trend, the probability of a trade setup is reasonably increased. We will enter at the mentioned support and take profits at the next resistance level. This trade is a 2.77 risk to reward ratio trade.

EURAUD bullish continuation from 1.5970

Jul 29 2021

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