The EURAUD has formed a Bearish Engulfing Bar (BEEB) on the daily price action chart. This Bearish Engulfing bar is down at the low and in-line with the strong down-trend that has been in play in recent months. Whilst this engulfing bar is not up at a swing high like a strong reversal signal, it still could be hinting at a possible continuation lower into the next near term support level if price can break lower.
As I write this blog post, price has started to retrace higher and back into what could be the First Test Resistance (FTR). As I explain in-depth in one of the recent trading tutorials First Test Support/Resistance Price Action Trading Strategy when price makes a quick break out of an important support level like it has done here on the daily level and then snaps back into the same level, it can often be a good area to hunt for high probability trades because of how the price action order flow is made up. If price does move into this new price action flip resistance, then it could act as a potential solid area to look for short trades, just the same as the area we posted about in yesterdays Daily Forex Market Commentary on the CHFJPY acted as a solid resistance area.
If price does go onto break the bearish engulfing bars low, the next support level comes in around the 1.4235 area. For any potential trades to be taken at the new price action flip resistance area, there would need to be a high probability price action trigger signal fired off. If you want to learn about how you can play the more advanced price action continuation and breakout setups, then check out the Forex School Online Lifetime Membership.
Daily Chart EURAUD
Daily Chart EURAUD
Thanks Joe!
Great hard work.best regard.Joe