EUR/AUD is right now making a consolidation on a strong resistance zone between 1.6586-1.6585. Two possible scenarios are on the table:
Long:
-Wait for a confirmation. An impulsive candle breaking to the upside of the resistance zone would be a great opportunity to go long with a target around 1.6750.
Short:
-Wait for a good candle closure below the 20 EMA on the 1h Chart at least or a good rejection from the resistance zone. A target would be the 1.6325.
Always use stop losses and at least a 2:1 risk/reward ratio.
This is simple price action. We are not looking for indicators or trying to guess movements of the market. If you do a good risk management and stick to your strategy, you are on the right way.
Long:
-Wait for a confirmation. An impulsive candle breaking to the upside of the resistance zone would be a great opportunity to go long with a target around 1.6750.
Short:
-Wait for a good candle closure below the 20 EMA on the 1h Chart at least or a good rejection from the resistance zone. A target would be the 1.6325.
Always use stop losses and at least a 2:1 risk/reward ratio.
This is simple price action. We are not looking for indicators or trying to guess movements of the market. If you do a good risk management and stick to your strategy, you are on the right way.