EURAUD A Possible Small Long Or A Big Short???
Looking at EURAUD overall from the you can see how the price is starting a price trap. Last week we had it rejecting off the top resistance of the trap creating a double top and signaling the reversal of the trend.
today looking at it I see that I could possible be retracting a little.. taking a little breather. Retracted far enough into the golden zone are of the 50-61.8 fib lvl.
however I also kept in mind that it was also breaking one of the strategies I use.. the 3 fan principle. it had broken through 2 of the fan lines and was heading to break the 3rd. so I am cautious about opening up a short position because of that.
So I set myself 2 option. if it breaks the 3 fan principle then I know It will most likely be headed back up towards the uptrend. You can also see a small inverted head and shoulder pattern signaling and possible explaining why the fan lines are getting broken..
but.. the price still has yet to break the 3rd fan.. if it doesn't then it sits nicely on the golden fib zone and we are expected to continue to ride this bear all the way down to the major support
today looking at it I see that I could possible be retracting a little.. taking a little breather. Retracted far enough into the golden zone are of the 50-61.8 fib lvl.
however I also kept in mind that it was also breaking one of the strategies I use.. the 3 fan principle. it had broken through 2 of the fan lines and was heading to break the 3rd. so I am cautious about opening up a short position because of that.
So I set myself 2 option. if it breaks the 3 fan principle then I know It will most likely be headed back up towards the uptrend. You can also see a small inverted head and shoulder pattern signaling and possible explaining why the fan lines are getting broken..
but.. the price still has yet to break the 3rd fan.. if it doesn't then it sits nicely on the golden fib zone and we are expected to continue to ride this bear all the way down to the major support