EURAUD - SHORT - WYCKOFF DISTRIBUTION AND DAILY SUPPLY ZONE
EUR/AUD looks bearish on the Daily timeframe, when scaling down on the 4hr timeframe you can see the potential for a Wyckoff Distribution occurring. It looks as though we are entering Phase C of the Distribution and the potential for a UTAD to form.
Further confluence is found in the long term downward channel, a false breakout would tie into the Wyckoff analysis. At the top end of the channel resistance is a strong Daily supply zone (in yellow). This occurs near the 61.8% Fibo so provides further confluence.
I would look for price action confirmation either within the Supply zone or near the top of the channel, both would be taken as the UTAD formation and I would then initiate a short trade.
Further confluence is found in the long term downward channel, a false breakout would tie into the Wyckoff analysis. At the top end of the channel resistance is a strong Daily supply zone (in yellow). This occurs near the 61.8% Fibo so provides further confluence.
I would look for price action confirmation either within the Supply zone or near the top of the channel, both would be taken as the UTAD formation and I would then initiate a short trade.