EURAUD is sitting at a very lucrative supply/resistance level. This level has been tested only once before and the market reversed significantly after tapping it. This makes it a supply zone. Market has been creating LL’s and LH’s and has not been able to address the breakout of the resistance. Also, the price action seems to be rejecting the zone. This is a solid short for EURAUD in aspect to just the structure. The trend is still bearish on the pair.

The ascending trendline is formed as a diagonal support level. This trendline is partially below the current prices. Once its broken out for sells, then we have an added confirmation for the sells.

The 75-78.6% retracement level is in confluence with the resistance level. This golden area also implicates the pressure for trendline breakout sells. If price action reflects a bearish pressure from the retracement level, we will have an added confirmation for shorts.

Both the EMA’s are currently bullish as prices are above both the EMA’s. EMA 50 was pierced for the bear run but then again, was pulled up above the EMA 50. EMA 200 is still far off and could be considered as a potential profit target.

RSI is at 56 level, which is a bullish region. CCI is at 84, which is also a bearish region but nearing the neutralized level of 0. If the market starts to push down, the oscillators will turn to the bearish zone. We can wait for the oscillators for turn bearish to take the position.

The solid confirmations of the technical depict a EURAUD sell-off. With that, we have to align the oscillators. We can either wait for the oscillators to turn bearish or we can simply take the position filtering the oscillators, at the prime level of resistance. The benefit of shorting at this current level is, minimal drawdown.

EURAUD priming for bears/shorts

Sep 29 2021

Take Profit +0.96%

Holding time 18hr

1.61650

Entry price

1.60100

Take profit price

3