Technician
Short

EURAUD: The Downside Prevails

FX:EURAUD   Euro / Australian Dollar
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6
Nice example of complex technical patterns, the EURAUD completed a major head and shoulder top pattern, by completing the right shoulder of the pattern in unique, rare double top formation, which hinted at that time that price would probably break the neckline for the head and shoulders . Indeed, the price broke 1.5030 support level and neckline of the HS, to extend and reach the ideal target of the double top around 1.4800.

The overall picture is getting more negative, as we may be in the beginning of a new bear trend, however, that is not important , as i don't really care now about forecasting where price is headed over the long term, what i will be looking for is pullbacks towards the broken support-turned-resistance around 1.5000, for new short setups, as upside pullbacks will surely provide new opportunities to short, through short term bearish setups.

I will keep you posted for updates and possible shorter term trade setups

Good luck, join me at:
https://twitter.com/thefxchannel
thefxchannel.com

Comments

I agree. Also for the strength the move i think it's more likely to go down to stronger S&R first, before heading back to the 1.499-1500 lvl.
But bears are looking really good. :)
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