What a difference a rate cut makes! Long, but not now!

FX:EURAUD   Euro / Australian Dollar
125 2 11
- Last week we already saw bearish momentum was weaker. (weekly HA candle and haDelta)
- This week as RBA cut base rate by 25 bps             , price quickly and agressively moved back to neutral territory.
- Heikin-Ashi is bullish , Price trades back to weekly Kumo and Kijun Sen. The move was too quick, and haDelta value almost reached 2. I think 1,53-1,54 will be a stronger support/resistance and will block bulls for a while.

- Ichimoku is neutral. We have a very thick Kumo cloud, which means a hard wall to break through. Forward Kumo however shows Bulls have better chances, but I think they will have to gain more power. Price moved too quickly, and reached Kumo top below 1,54, which I think will act as stron resistance.
I expect a dip back to 1,51 first. The Bulls will go all in again.
- Heikin-Ashi is bullish , with extremely strong momentum. Maybe short term it is too strong: see haDelta hitting high value!
We need some consolidation or a pull back before it goes further up.
- Also there is a lot of resistance above Chikou Span! Bulls will have a lot more job to do.

For now I'd call for reduce longs. Maybe even try a small CT             swing short, with tight stop loss.
I expect consolidation or pull back to take place. Volatility will stay high on this cross.
If it pulls back, it may also develop an inverse Head and Shoulders pattern, which if confirmed, will have very serious consequence later -> possibly 1,60+ again.

p.s.: I opened 0,3 unit swing short. Stop above 1,5420
I agree with you on this sir
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