EURAUD Top-Down Analysis
Hello Traders,
Here is the Top-Down Analysis of EURAUD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 19 Oct
M > Price dropped to monthly support level and after rejection started upward move to reach and test monthly resistance level.
W > After testing neck of W formation price again moved up to test previous resistance.
D > Price is moving in a channel with upward incline and price is respecting both support and resistance of the channel. In past price made a range near upper band of channel, it is now at resistance level of the channel. Price has created another W formation and its neck will make price move within the range.
As per COT EUR saw closure of Long and addition of Short for the 2nd time in a row, reducing net positions. EXY however improved its position for the said week because we saw reduction in overall open interest, it did not allow its position to slip. EXY was weak last week. AUD saw addition of more Short than Long positions, reducing net positions whereas N-R added Long and closed Short positions, improving cumulative Long positions to most for current year. In fact Commercials also added Long but closed Short positions, increasing total open interest. AXY further improved its position during the said week. However AXY weakened last week.
For all EUR pair we are going follow the trade direction very cautiously with price management.
4H > Price is now at resistance of the channel and we will wait for reversal.
Pair Correlation > EURAUD has negative correlation with AUDCHF, NZDUSD, AUDUSD, NZDJPY and AUDCAD on daily time frame.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of EURAUD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 19 Oct
M > Price dropped to monthly support level and after rejection started upward move to reach and test monthly resistance level.
W > After testing neck of W formation price again moved up to test previous resistance.
D > Price is moving in a channel with upward incline and price is respecting both support and resistance of the channel. In past price made a range near upper band of channel, it is now at resistance level of the channel. Price has created another W formation and its neck will make price move within the range.
As per COT EUR saw closure of Long and addition of Short for the 2nd time in a row, reducing net positions. EXY however improved its position for the said week because we saw reduction in overall open interest, it did not allow its position to slip. EXY was weak last week. AUD saw addition of more Short than Long positions, reducing net positions whereas N-R added Long and closed Short positions, improving cumulative Long positions to most for current year. In fact Commercials also added Long but closed Short positions, increasing total open interest. AXY further improved its position during the said week. However AXY weakened last week.
For all EUR pair we are going follow the trade direction very cautiously with price management.
4H > Price is now at resistance of the channel and we will wait for reversal.
Pair Correlation > EURAUD has negative correlation with AUDCHF, NZDUSD, AUDUSD, NZDJPY and AUDCAD on daily time frame.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
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