Welcome to my new analysis about EURAUD on several perspectives. The Eurozone inflationary pressures increased massively within the recent times determining a huge bearish edge against the AUD zone, especially as inflation in the Eurozone is not yet tackled by continued higher rate hikes with which the ECB, European Central Bank is trying to decrease inflation. Compared to the AUD zone this means that the EUR is much more bearishly inclined against the AUD and in this case it is also important on how the actual technical price action is confirming such a bearish inclination.
In my chart I am pointing out that the EURAUD is now setting up a gigantic ascending-wedge-formation with several resistances within the structures. The EURAUD is now approaching the major 50% Fibonacci-resistance within the 1.7 which is simultaneously determining the resistance by the upper boundary of the gigantic wedge formation and forming a coherent resistance-cluster within this level. Once EURAUD shows up with a major pullback off this zone this means that the possibility for an completion of the wedge-formation increases astronomically and a completion of it will point to the bearish target-zones to be reached.
Especially if the massive interest rate hikes within the Eurozone implemented by the ECB should not effectively decrease the inflation rate of the EUR this will put a lot of bearishness on the Euro and therefore also on EURAUD and with such a dynamic it is going to accelerate the bearish momentum. Once the whole ascending-wedge-formation has been finally completed the target-zones will be active and once the final target-zone has been reached the bearish momentum should be assessed again because with further developments to the downside this could actually lead to a major bearish wave-count extension for EURAUD and move to lower levels. In any case it will be a highly important development to consider here.
In this manner, thank you everybody for watching the analysis, support from your side is greatly appreciated.
VP
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ANALYSIS UPDATE: EURAUD pulled back in the range and is aiming for a final breakout.
A higher momentum is going to accelerate the breakout dynamics and activate target-zones.
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NEWS UPDATE: Massive inflationary pressures in the Eurozone and continued high interest rates put a lot of bearishness on the Euro.
Further rate hikes increase the bearish possiblities and setup the next bearish wave.
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ANALYSIS UPDATE: EURAUD emerged with the major pullbacks as mentioned and the completion of the wedge-formation is likely to be completed in the next times.
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ANALYSIS UPDATE: EURAUD emerged with a bearish momentum to form the completion breakout of the wedge formation.
EURAUD activated further bearish continuations with the final breakout.
We always love to see the video breakdown authors post as they are a great help to the community so thanks for sharing your thoughts with everyone! Appreciate what you're doing here!
VincePrince
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@JPI_Traders_Group, Thanks a lot. It is greatly appreciated.
jpeacockfx
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@VincePrince, You're more then welcome, the pleasure is ours!