The EURAUD pair is showing signs of trend continuation via a classic bearish flag pattern formation. After a sharp decline, the market has entered into a tight consolidation channel, climbing steadily inside a sloped flag structure. Price is now testing a critical resistance area near 1.7830–1.7840 while hovering just below the 200 EMA.
This setup offers a high-probability sell opportunity — but only after confirmation.
1. Structure Overview
2. Trade Plan – Bearish Flag Breakdown
✅ Entry Plan:
🛡️ Stop Loss:
Place the stop loss just above the major resistance zone, around 1.7835–1.7840.
🎯 Target Zones:
Risk/Reward Ratio: 1:2, 1:4, 1:9.4+
3. Why This Trade Makes Sense
4. Trade Management Tips
5. Final Thoughts
This EURAUD chart is a textbook case of pattern + price action + resistance confluence. The flag structure is well-defined, and the reward-to-risk ratio is significantly favorable if the breakdown confirms.
📌 Watch for:
High-probability setups don’t require prediction — they require preparation.
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Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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This setup offers a high-probability sell opportunity — but only after confirmation.
1. Structure Overview
- The initial sharp downtrend is followed by a consolidation channel — a textbook bearish flag.
- Price is approaching major resistance (1.7830–1.7840) and 200 EMA, acting as a ceiling.
- A breakdown from the rising support of the flag is expected to trigger a continuation toward the downside.
2. Trade Plan – Bearish Flag Breakdown
✅ Entry Plan:
- Wait for a breakdown of the green support trendline (flag support).
- Then, wait for a re-test of the broken support (now resistance).
- Enter short only after a bearish candlestick confirmation (e.g., bearish engulfing or rejection wick) on the 15-min or 1-hour chart.
🛡️ Stop Loss:
Place the stop loss just above the major resistance zone, around 1.7835–1.7840.
🎯 Target Zones:
- Target 1 (TG1): 1.7755
- Target 2 (TG2): 1.7718
- Final Target: 1.7632
Risk/Reward Ratio: 1:2, 1:4, 1:9.4+
3. Why This Trade Makes Sense
- Bearish Flag is a reliable continuation pattern in strong downtrends.
- Price is failing to break above key resistance and 200 EMA.
- The flag offers a tight SL and large downside potential — ideal conditions for R:R setups.
- Confluence of structure, pattern, and trend all align for short bias.
4. Trade Management Tips
- Scale out partial profits at TG1 and TG2, and trail stop for final target.
- If breakdown fails, avoid chasing price — re-evaluate bias if price breaks above 1.7840.
5. Final Thoughts
This EURAUD chart is a textbook case of pattern + price action + resistance confluence. The flag structure is well-defined, and the reward-to-risk ratio is significantly favorable if the breakdown confirms.
📌 Watch for:
- Breakdown of rising support
- Retest and bearish candle
- Entry only on confirmation
High-probability setups don’t require prediction — they require preparation.
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Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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Note
Updated.
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📈 Trade Smarter with TradZoo!
🔗 Website: bit.ly/tradzoopage
📣 Telegram: t.me/tradzooIndex
📲 Android App: bit.ly/TradZooApp
📲 Forex App:tradzoo.com/forex/download
🍎 iOS App: bit.ly/TradZoo-iOS-App
🔗 Website: bit.ly/tradzoopage
📣 Telegram: t.me/tradzooIndex
📲 Android App: bit.ly/TradZooApp
📲 Forex App:tradzoo.com/forex/download
🍎 iOS App: bit.ly/TradZoo-iOS-App
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.