EURO has had a bottom with being over-sold in the currency market. This impacts the EURO economy, hence, fundamentally the ECB needs to intervene to take the EURO higher against all the quote currencies. Most volume on EURAUD occurs during the Asian and European session.

- Market structure: EURAUD has a bullish market structure forming HH’s and HL’s. EURAUD bounce off from the 1.5950 support area and may retest once more. The retest is our indication for long position.

The resistance level till where the EURAUD can move is 1.6120 resistance level.

- Trendline: EURAUD has broken the descending trendline with a volume filled bullish candle. Market has retested the trendline and also validated the breakout buy with candles opening and closing above. This gives us another confirmation for the market to continue moving up.

- Retracement: After the trendline breakout buy, we will wait for the market to retrace at the level of support in confluence with the golden retracement level of 75-78.6%. At this level, we will have 3 confirmations for longs. The price point is at 1.5950. If we want a more risk averse trade, then the buying level should be at 1.5880.

- EMA's: Both EMA’s are bullish at the moment. Bullish death cross has happened earlier and market has broken the EMA 50 right now. At the support level of 1.5950 we might additionally get an EMA 200 retest.

- RSI/CCI: Both oscillators are in a bullish range above their respected neutral levels. There is no divergence on either of the oscillators but, we do have trendline breakouts on both of them.

There is a good opportunity of EURAUD for long positions. Currently we have 4 confirmations at the support level to go long. But if we want to be safe and secure, the high probability entry with minimal drawdown would be at 1.5880. This is the region of 75-78.6 % retracement levels where we may get a sniper entry.

EURAUD high probability intra-days

Aug 13 2021