An emergence of a divergence in the EURAUD pair in a 1H timeframe signals a potential reversal to a bearish trend . Furthermore, I could see there was an evident double top pattern that could be witnessed, signaling a possible opportunity to sell
Strategy to approach this potential Short sale trade for EURAUD:
1) Wait for the price to break previous HL.
2) Based on the calculation of lot size of 0.09, I would place a sell stop on breakout point at 1.61578
3) Sell Stop - 1.62664
4) Keeping the risk/reward ratio to 1:1, I kept the Take Profit 1 level at 1.60583
Strategy once Take Profit 1 is achieved:
1) Once Take profit 1 is achieved, I will revise the Stop loss level to the previous Take Profit 1 level i.e. 1.60583 for breakeven.
2) For the 2nd leg of the trade my Take Profit 2 is 1.59496
Strategy to approach this potential Short sale trade for EURAUD:
1) Wait for the price to break previous HL.
2) Based on the calculation of lot size of 0.09, I would place a sell stop on breakout point at 1.61578
3) Sell Stop - 1.62664
4) Keeping the risk/reward ratio to 1:1, I kept the Take Profit 1 level at 1.60583
Strategy once Take Profit 1 is achieved:
1) Once Take profit 1 is achieved, I will revise the Stop loss level to the previous Take Profit 1 level i.e. 1.60583 for breakeven.
2) For the 2nd leg of the trade my Take Profit 2 is 1.59496