EURAUD - IS THE DOWNTREND ABOUT TO KICK OFF?

Mar 17

Symbol - EURAUD

The EURAUD pair is currently testing a key resistance level on the weekly chart. A false breakout has occurred following a liquidity sweep, with no apparent continuation of the bullish trend. Additionally, the chart is displaying a familiar pin-bar reversal pattern.

After the price exited the consolidation range, which was capped by the 1.6787 resistance level, a distribution pattern began to form, targeting liquidity located just above the weekly resistance at 1.7196. This target has now been reached, and the price is consolidating beneath the base of the reversal structure, signaling the potential for further downward movement. There is a likelihood of either liquidation or a downward impulse toward the 1.7100 - 1.7000 zone. The forex market has exhibited a relatively calm demeanor since the week's opening, allowing technical factors to dominate market behavior until fundamental influences come into play.

Key resistance levels: 1.7196, 1.7304
Key support levels: 1.7107, 1.7016

Interest lies in the areas just below the local lows; however, from a technical standpoint, the market is primarily focused on liquidity beyond the 1.6787 level. Given that there are no significant barriers beneath 1.7016, a break of this support would likely open up a clear path towards the next liquidity zone.

Mar 20

Trade active

Reached sell zone 1.7225

Short positions initiated with SL 1.7255

Mar 25

Note

Short position active.

Mar 26

Trade closed: target reached

CMP 1.7070

First target reached.
+155 pips in profit.