Following our daily and weekly overviews (tradingview.com/chart/EURAUD/ClQYSaI9-SHORT-EURAUD-Overview-on-Daily-Timeframe-Short-Opportunities/), on the 4hr timeframe it seems that we are having a great short opportunity. After a first impulsive movement to the downside, in fact, we can clearly see that the pair is consolidating in a flat formation ("abc" correction). As always, we never know if it is going to be a "regular" flat, or an "irregular" flat, therefore we have to monitor price action on the 4hr and 60min timeframes to identify a potential sell setups with the best R/R ratio. Watch for 60min ending diagonal-type formations and sell the break of their trend. This is a great trading opportunity, for this year, as the R/R is above excellent and we are expecting the pair to retest the 1.35 area, so don't miss it.
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it is becoming ugly and critical now, as for the cad pair (worst is yet to come i shall say), completely out of control, all the analysis are invalid now
TradingClear
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@lapin_eliott, Not too sure what you mean exactly. The minute "abc" is invalid, yes. It never gave us a sell setup, so we have never been in a sell and are not too concerned. From now on though, we are definitely looking for a sell, as this is now evidently a correction for more upside, which needs to complete itself with a "C" leg, and will definitely break the low at "A". So first we will be looking for a sell to break "A", then we will be looking for a buy. Hope this helps,
lapin_eliott
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after eurcad and gbpcad (which seem to give some relief now) it is now the turn to euraud to look particularily ugly ....
TradingClear
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@lapin_eliott, yes, the pair went up pretty aggressively. We were expecting it to break "a" for a regular flat, and retrace to the 0.5 or 0.618, but it went further.
Luckily it never broke the uptrend of the consolidation and reversed, so we are not in the sell as yet.
In terms of structure, it still looks like a consolidation movement, for a downside to come.
Actually, this Friday, everything looks like a compressed consolidation before each pair's next moves: EURGBP consolidating for an upside move, EURAUD consolidating for a downside move, USDJPY consolidating for an up move, GBPCHD consolidating for a down move etc. etc.
Have a good weekend,