EURAUD Forecast (Short)

EURAUD Forecast (Short):
Entry Price: 1.71900

Take Profit (TP): 1.68300 (3600 pips below the entry point)

Stop Loss (SL): 1.73820 (1920 pips above the entry point)

Rationale for the Forecast:
Current Context:

EURAUD is near a resistance level, indicating a potential downward reversal.

The Take Profit level (1.68300) is close to a key support level, which could be reached if the euro weakens or the Australian dollar strengthens.

The Stop Loss level (1.73820) is set above a key resistance level, minimizing risks in case of an upward breakout.

Fundamental Factors:

EUR: Mixed economic data from the Eurozone, with potential weaknesses in industrial production and consumer confidence, could pressure the euro.

AUD: Positive data from the construction sector and potential improvements in commodity prices could support the Australian dollar.

Technical Factors:

The level of 1.71900 is a resistance zone where a downward move is possible.

The level of 1.68300 is a support zone where profit-taking could occur.

The level of 1.73820 is a zone above key resistance where the Stop Loss would be triggered.

Recommendations:
Target (Take Profit): 1.68300 (3600 pips profit).

Risk (Stop Loss): 1.73820 (1920 pips loss).

Risk-Reward Ratio: 1:1.875 (profit nearly twice the risk).

Scenarios:
Optimistic Scenario:

EURAUD reaches the 1.68300 level, and the position is closed with a profit.

This could happen if Eurozone data weakens further or Australian data improves.

Pessimistic Scenario:

EURAUD breaks above the 1.73820 level, and the position is closed with a loss.

This could occur if Eurozone data improves or Australian data worsens.

Conclusion:
The current trade has a favorable risk-reward ratio (1:1.875).

It is recommended to monitor news from the Eurozone and Australia, as they could impact the pair's movement.