Hello Traders,
Here is the Top-Down Analysis of EURAUD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 49 - Dec 01
M > Market has support of rising trend-line, price dropped to test monthly support again.
W > After respecting upward resistance trend-line for some months price broke it to the upside before dropping to test rising support trend-line. Price has been dropping for past 5 weeks.
D > Price broke support trend-line to the downside to test daily support and after a pull back dropped again with a false breakout. Price is now moving to the upside with strong rejection wicks at both end but has not yet created a HH. We can see strong bullish divergence and can expect upward move to continue.
As per COT EUR saw addition of Long and closure of Short, increasing net positions. EXY has strengthened in past 2 weeks. AUD saw addition of both Long and Short, improving net positions (now in -ve). AXY ended in a Doji during the said period but strengthened to test monthly resistance again last week, we can expect AXY to weaken this week.
For EUR Institutions, since August, have been reducing their portfolio of Long and increasing Short positions, with about 60K Long positions closed and 18K short positions opened so far. For AUD we have seen closure of Long and addition of Short in last couple of months, making net positions move from 16K to -05K. Strong EUR was unable to pull price of EURAUD to the upside hence AUD must weaken to drive the pair to upside, till then we can expect price to consolidate.
4H > After deceleration price started making an upward move last week but it must break downward resistance trend-line to the upside and create a HH to confirm bullish trend. We will get an opportunity to enter Long after price drops to create a LH.
Pair Correlation > EURAUD has positive correlation with EURNZD and negative correlation with AUDCHF, AUDUSD, AUDJPY, and AUDCAD on daily time frame.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of EURAUD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 49 - Dec 01
M > Market has support of rising trend-line, price dropped to test monthly support again.
W > After respecting upward resistance trend-line for some months price broke it to the upside before dropping to test rising support trend-line. Price has been dropping for past 5 weeks.
D > Price broke support trend-line to the downside to test daily support and after a pull back dropped again with a false breakout. Price is now moving to the upside with strong rejection wicks at both end but has not yet created a HH. We can see strong bullish divergence and can expect upward move to continue.
As per COT EUR saw addition of Long and closure of Short, increasing net positions. EXY has strengthened in past 2 weeks. AUD saw addition of both Long and Short, improving net positions (now in -ve). AXY ended in a Doji during the said period but strengthened to test monthly resistance again last week, we can expect AXY to weaken this week.
For EUR Institutions, since August, have been reducing their portfolio of Long and increasing Short positions, with about 60K Long positions closed and 18K short positions opened so far. For AUD we have seen closure of Long and addition of Short in last couple of months, making net positions move from 16K to -05K. Strong EUR was unable to pull price of EURAUD to the upside hence AUD must weaken to drive the pair to upside, till then we can expect price to consolidate.
4H > After deceleration price started making an upward move last week but it must break downward resistance trend-line to the upside and create a HH to confirm bullish trend. We will get an opportunity to enter Long after price drops to create a LH.
Pair Correlation > EURAUD has positive correlation with EURNZD and negative correlation with AUDCHF, AUDUSD, AUDJPY, and AUDCAD on daily time frame.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX