Good Sunday Traders,
we are looking at the Euro vs. the Australian Dollar on the daily chart. I really like this trading idea and entered a short since 20th July. So why do I think that the EUR/AUD pair will fall at least to the neck of the right shoulder ?
First we see clearly the head and shoulders pattern with a little bit higher right shoulder against the left one. Anyways i think as we go higher in timeframes patterns like the head and shoulders are more valuable than in lower frames like 15min charts.
Putting out my fibonacci retracement and looking at the last swing high (right shoulder) the daily candles did not close above the 61.8 level, which also forms a low support / resistance line. Combined with the 61.8 level, its a powerful line and as we saw on Friday evening price rejected from it downwards, broke out of the last daily candles consolidation and should move a lot more lower...
Wishing all of you a great Trading Week.
we are looking at the Euro vs. the Australian Dollar on the daily chart. I really like this trading idea and entered a short since 20th July. So why do I think that the EUR/AUD pair will fall at least to the neck of the right shoulder ?
First we see clearly the head and shoulders pattern with a little bit higher right shoulder against the left one. Anyways i think as we go higher in timeframes patterns like the head and shoulders are more valuable than in lower frames like 15min charts.
Putting out my fibonacci retracement and looking at the last swing high (right shoulder) the daily candles did not close above the 61.8 level, which also forms a low support / resistance line. Combined with the 61.8 level, its a powerful line and as we saw on Friday evening price rejected from it downwards, broke out of the last daily candles consolidation and should move a lot more lower...
Wishing all of you a great Trading Week.