Looks like a bearish bat pattern is nearing completion on the 60 for EURAUD (though point C is neither a .382 or a .886...) This is nice because it's going with the bearish trend and although we're seeing some bearish movement, I'm hoping that's just so it can get enough steam to make it to the .886.
RSI(14, close) shows we're almost overbought using 80 as...
TOP DOWN ANALYSIS.
MONTHLY LEVELS WERE DRAWN ON. I SPOTTED MY OVERALL MONTHLY TREND HAD BEEN BROKEN TO THE DOWNSIDE, THEN CAME BACK FOR A RETEST BUT THEN BROKE THROUGH IN WHICH IT THEN HIT THE 0.61 FIB PUSHING PRICE BACK DOWN FOR THE CONTINUATION TO THE DOWNSIDE.
CHART EXPLAINS THE REST.
THANKS. GIVE ME A FOLLOW MORE CHARTS TO BE POSTED.
EURAUD is oversold on the hourly chart after a very strong downtrend. Expecting price to retest the previous resistance level before continuing further to the downside. Stops above 1.4 price level which was another major support turned resistance level.
EURAUD daily setup:
- Price is within a daily descending channel and currently putting in a third touch of the upper boundary acting as resistance
- We have a daily Fibonacci setup with price currently below the 61.8 level which is confluent with the descending channel
- Price is also below the daily 200MA which is confluent with both the 61.8 fib level and...
Over all trend is down and resistance at 1.4000 and a nice bearish Gartley pattern forming it looks like a good way to start the week. Also a similar pattern forming on GBPAUD
Long term view on EURAUD is bearish, currently in a channel displaying a head and shoulders pattern. It has now broken weekly trend line and am now waiting for a retest on daily for entry. Target 1 will be fib extension -0.27 which will touch support line on bearish channel.
We might have a bearish gartley forming on the EURAUD 60 minute.
Since the AB leg is between the .618 and .786 retracements of XA, I'm assuming if it forms this gartley will complete at the .886 retracement @ 1.4340-ish.
SELL 1.4340-ish
TP @ 1.4270-ish if you're conservative
TP @ 1.4230-ish if you're aggressive
Stops above X as always
