So basically EURAUD has been in a consolidation of 90+ pips for 15 days we can see a clear breakout and retest of the support price my bias is for it to be short but it will most likely go up cause my analysis has been pure ass for the past couple weeks.
We have had the break and retest with immediate rejection of the trendline here as shown which lined up nicely with a former swing low point.
However, we have failed to go ahead and make a new lower low. I would look to see how price reacts around the most recent high and make a decision on my bias from there.
Reasons to look at potentially going short;
- Third touch of descending trendline
- 61.8 fib retracement
- Back testing Short term support now possible resistance
- Heading towards dynamic resistance (200MA)
Things to consider before;
- A lot of buying pressure over the last few days (2 of 3 Strong Bullish Candle closures)
- DXY looking bullish, Could see some...
1) Hammer recently printed-
2) Recent candlesticks portraying bulls failing to maintain bullish momentum.
3) D1 Fib levels indicating pullback to reach 0.618 level at a price of 1.20901
4) 3rd trend line bounce on upward trend line
-PA 3rd bounce on 4h trendline
-PA has formed a lower low, likely to form a lower high
-PA not on a zone but there is a short term opportunity
Doji printed on trendline
-Daily (thick blue) trendline was broken hence PA retesting the trendline as support
-R:R = 145.6pips:101.1pips 1:1.44