According to our analysis published on 7th Aug, we anticipated that the bears will be taking control of the pair by taking it out of the overbought conditions and clear signs of divergence. The market activated our order and went in the direction expected but now has retreated back to its highest highs formed in daily time frame. EURAUD came down to 1.59030 but found support at our lower trend line of the bullish channel. We also had our exponential moving average 50 and intraday exponential moving averages 8,13,21 in daily time frame below 1.59000 which provided an upthrust with gains to EURAUD. After the aforementioned move,we did got EURAUD below the ichimoku cloud, while still being almost 200 pips away from the ichimokus' cloud surface in daily. This indicated that the pair would revert itself in shape of a deeper bearish correction before providing us with any further bullish sentiments but this case would have to wait until we get a strong bearish impulsive reversal from current market price. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The elliot wave theory suggests that EURAUD has completed its impulsive 5 wave bullish structure of higher degree under intraday and weekly time frame while creating a double top in daily time frame at the moment. A closing below the previous daily high followed by a bearish reversal would concur to the double top formation.  We have our 61.8% fibb retracement level in daily chart which can also be taken as a sign of targeted destination in shape of bearish correction. In weekly chart we have another indication that EURAUD will be experiencing a bearish reversal in regards to the market retrieving from the lower surface of ichimoku cloud and the formation of bearish dark cloud cover is suggesting we are in the right dovish direction. Keep following our analysis for further updates, we will keep traders posted as we find change in the market structure.

EURAUD PREPARING FOR A DIVE

Aug 17 2021