In my previous chart of EURAUD I was anticipating bullish AB=CD
Unfortunately it was premature at the time as It still was in correction mode. Hence that trade will now be delayed.
However, in the mean time it could offer interesting shorting opportunity. Most of the details are on the chart but here is the summary of technical to consider as you plan your trade:
1. After a wave (b) top in my chart it seems that we are forming an ending diagonal of which waves 1,2 and 3 are complete each with 3 swings.
2. Currently retracing in wave 4 which could top around 1.42 - 1.43.
3. I has already retraced 38.2% of previous decline typical of wave 4 in ending diagonal.
4. RSI approaching potential resistance line
5. Also an area where previously it was support which now could form resistance.
Conclusion: If the above holds then the downside targets could be:
Target 1 = 1.37
and Target 2 = 1.35
Both in area with several fib confluence and lower parallel of the declining pitch fork.
Disclaimer: All of my work above could be completely wrong, so please use or disregard it at your discretion.
As, always please do your own analysis for your requirement. Select to follow me and the charts for notification of any updates. If you like the analysis show this by thumbs up and constructive comments or alternative ideas for all to learn from.
Thanks for taking the time to view my analysis.
DanV
danv-charting.com
Unfortunately it was premature at the time as It still was in correction mode. Hence that trade will now be delayed.
However, in the mean time it could offer interesting shorting opportunity. Most of the details are on the chart but here is the summary of technical to consider as you plan your trade:
1. After a wave (b) top in my chart it seems that we are forming an ending diagonal of which waves 1,2 and 3 are complete each with 3 swings.
2. Currently retracing in wave 4 which could top around 1.42 - 1.43.
3. I has already retraced 38.2% of previous decline typical of wave 4 in ending diagonal.
4. RSI approaching potential resistance line
5. Also an area where previously it was support which now could form resistance.
Conclusion: If the above holds then the downside targets could be:
Target 1 = 1.37
and Target 2 = 1.35
Both in area with several fib confluence and lower parallel of the declining pitch fork.
Disclaimer: All of my work above could be completely wrong, so please use or disregard it at your discretion.
As, always please do your own analysis for your requirement. Select to follow me and the charts for notification of any updates. If you like the analysis show this by thumbs up and constructive comments or alternative ideas for all to learn from.
Thanks for taking the time to view my analysis.
DanV
danv-charting.com
