EURAUD, Huge Formation, WEDGE to Setup BEARISH BREAKOUT!

Hello There!

Welcome to my new analysis of EURAUD from the 4-hour timeframe perspective. In recent times the EXY, European Currency Index has shown up with crucial bearish inclinations which are pointing to a bearish market sentiment especially with massive inflation spreading like wildfire seemingly not reacting to exponential rate hikes pulled out by the ECB. Such developments could point to a major bearish setup emerging for the EURAUD also. Besides that, there are important formational structures that need to be considered here. In this case, it is necessary to determine the final completions and changes within the market before rushing to anything else.

Formational Developments, Resistance, Bearish Momentum, and Setup:
When looking at my chart now EURAUD continued to form this preceding huge bearish descending channel trend in which it already pulled back several times bearishly off the upper boundary increasing the high possibility likelihood of such pullbacks to holding on and printing the next bearish waves with continued lower lows to be determined. Especially as EURAUD already pulled back several times from the 65-EMA in red as well as the 35-EMA in grey these EMAs are substantial resistances from where continued pullbacks are more likely than anything else. Currently, EURAUD is approaching the EMAs together with the upper boundary resistance of the channel once again which is pointing to the next bearish wave to set up from here on.

Upcoming Determinations, Bearish Breakout, Target Activation, and Underlying Drivers:
Furthermore, what is the most important formation in my whole chart is this crucial descending wedge formation. Such a formation is pointing to an increased continuation toward the bearish direction in almost all of the cases. This formation will be completed with a final breakout below the lower boundary as it is marked within my chart and as EURAUD already completed the wave-count within the formation this final breakout is likely to emerge within the near future. Once the breakout has shown up as it is marked this is going to be the origin of the wave C extension and bearish momentum acceleration as it is marked. Once this wave C acceleration and bearish wave has shown up it is going to activate the final target zone as marked.

Once this final target zone has been reached further assumptions need to be made. The pair is on my watchlist to determine important changes once they have shown up here, especially with the target projections and bearish developments to be expected. Especially, a massive inflation increase together with failed monetary policies are going to fuel a bearish momentum inclination here therefore these underlying factors also need to be considered then.

In this manner, thank you everybody for watching my analysis of CHFAUD. Support from your side is greatly appreciated.

VP

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ANALYSIS UPDATE: EURAUD emerged with the massive bearish pullbacks approaching the lower boundary and setting up for the final bear triangle breakout.

Once the bearish momentum breakout has emerged EURAUD is going to activate severe continuations and short side target zones.

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UPDATE: From a short entry perspective a risky approach would be to enter directly on the bearish wave.

A conservative approach would be to wait for the formation completion and enter on the bearish wave setup.

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ANALYSIS UPDATE: EURAUD emerged with high bearish momentum and acceleration towards the downside.

EURAUD is now approaching the final target zones and according to the current momentum is likely to accelerate bearishness beyond the level.

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ANALYSIS UPDATE: EURAUD since completing the whole descending triangle reached all of the bearish target zones.

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ANALYSIS UPDATE: EURAUD is not yet completely ready for a bullish reversal as there is still a lot of bearish volume which can lead to further bearish accelerations next.

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ANALYSIS UPDATE: EURAUD continued to reach all of the final bearish target zones within the schedule. ✔

EURAUD even increased bearish momentum below the target zones indicating the bearish continuation is highly possible.