EURAUD - Look for Continuation Short 1:5!

Dec 30, 2023

Building upon the previous analysis of EURAUD as shared in the link:



The recent price action indicates a ranging phase before a potential break of the previously identified Monthly Support Level. Considering the principle that larger time frames involve longer accumulation phases before transitioning into trending phases, it seems plausible that a downtrend may be in the making. The two strong rejections and the formation of a Double Top Chart Pattern, a reversal pattern, support this observation.

In navigating this scenario, exercise patience and adopt a waiting approach for the price to convincingly break the monthly support. Seek confirmation through a strong breakout with a closed body and be vigilant for the crucial retest phase before considering any moves.

Given the onset of a new Yearly Candle, it's advisable to allow the price to establish its own structures, especially after most investors have positioned their orders. Stay tuned for further developments.

Dec 30, 2023

Note

This is simply my personal technical analysis, and you're free to consider it as a reference or disregard it. No obligation! Emphasizing the importance of proper risk management—it can make a significant difference. Wishing you a successful and happy trading experience!

Jan 21

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Jan 21

Note

Persistent and robust rejections are evident at the Monthly Support (S), as discussed earlier. The strategy remains unchanged – we anticipate a strong Breakout (BO) on the Higher Timeframes (HTF>H4,D), followed by a retest at the nearest Supply Zone. However, the price failed to break through and instead rebounded to the subsequent Weekly Supply Zone, resulting in a movement of over 490 pips.

Buyer's orders have been accumulating for nearly 13 days before the Breakout occurred, leading to a continuation towards the next significant supply zone.