EURAUD has a decent long bullish setup from the support level of 1.4800. Right now, market is range bound on a structure. Although, on lower timeframes market is forming higher highs and higher lows, we can also analyse that the momentum is building for the mark up. 

The descending trendline is forming and awaits the breakout buy. This breakout buy once confirmed and validated, will have a confirmation for the market to move up after being retraced. 

At the support level, we have the confluence of the golden retracement area of 75-78.6%. This confluence will be a strong foot hold after the market has broken out for buys. The price of the confluence also stands solid at the 1.4800 level.

The EMA 50 is still bearish. The window towards the retest of the EMA 50 has around 400 pips. In a larger scheme of things, we can wait for the market to retest the EMA 50. This EMA 50 retest can also act as a profit targer towards the higher side.

The RSI is at a neutralized level at 50. This level on the oscillators should act as a catalyst for the market to continue moving up. But, there is a catch on this oscillator. The market is not at the support level where we are waiting for the long position. Once market reaches the support level, we may see the RSI bullish divergence at the over sold area.

EURAUD buys from 1.4800

Jul 19 2022

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