EURAUD, H%S Formed Formation, Downside Breakout More Likely!

Hi my friends,

we are looking at EURAUD 30-minute timeframe perspective, the recent events, the formation which has formed, what we can expect the next times and how to handle such a situation out of a trading perspective.

Looking at my chart you can watch there that EURAUD has formed a big and solid head and shoulders top formation, such formations are known as reversal formations confirming a top with additional downward price-action, sometimes such formations can also break to the upside but as they following on an overbought market the possibility for a breakout to the downside is much higher, I made an educational post about this which you can watch when going on my account, what is supporting the downside breakout here is the strong resistance EURAUD has still in the structure supported by the 30-EMA which is likely to confirm as resistance when touched in this area. The next times we can expect EURAUD to test this resistance and confirm it as resistance to move below the neckline which will confirm the formation and activate the downside targets at the 1.65 level you can watch in my chart marked in red but when this does not happen and EURAUD manages somewhat to move above the 30-EMA resistance this formation can also break to the upside which will confirm with a decisive volatile move above the 1.655 level but from an empirical perspective and the structure this is not a likely scenario here.

The formation can be traded either aggressively with entry immediately or conservative with the entry below the neckline, as the formation has not yet confirmed and there is still a small percentage possibility given for an upside breakout the confirmation conservative entry will much smarter here.

In this manner, thank you for watching the analysis, support for more market insight, all the best, and good weekend! ;)
"Trading effectively is about accessing possibilities, not certainties."

Information provided is only educational and should not be used to take action in the market.

Comment:

ANALYSIS UPDATE: EURAUD continued with the completion of the crucial head-shoulder formation to accelerate bearish pressure as massive supply entered.

Since the bearish supply dynamics completed the whole head shoulder formation it accelerated with heavy bearish momentum to reach the target zones.