# Resistance was respected
# Bearish engulfing pattern completed
# RSI recovering from oversold conditions
Shorting at market price 1.62732 with
# SL above bearish engulfing @ 1.64194 and
# TP lower down @ 1.57542
To learn the dynamics behind the analysis, please join my mailing list using the link below zc.vg
As usual don't bet the farm....
We are going down under. As you can see price is nearly at a key daily and monthly level and we can only see downside bearish movement IF price enters our resistance zone again... we will be waiting for price to enter this zone before taking a trade though... be patient and if price drops now from where it is before entering our zone and you miss the trade so...
We are currently seeing the markets get exhausted from the bullish run that began Apr 22 with speculation surrounding the rate cuts by the RBA and declining economic activities such as housing and construction. As of yesterday we have now seen the pair test multi year highs and get rejected and I look for a correction within the next weeks as negative data such as...
The EURAUD weekly chart above reveals that the rally from February 2017 low to as high as 1.61957 in March 2018 took the shape of a textbook Elliot Wave leading diagonal structure. The pattern is labeled (i)-(ii)-(iii)-(iv)-(v); wave (iv) overlap wave (i) high which make the whole advance an Elliot wave motive diagonal rather than an impulse.
The Big Picture...
In addition to our AB=CD harmonic pattern analysis we are seeing the formation of a Crab pattern as well. As a fallback strategy, if the resistance zone on the previous chart is broken then we are predicting the harmonic crab pattern to be completed before price falls to the targeted zones. We will post more updates as we see how the strategy plays out. FX:EURAUD
Price action has completed an ab=cd pattern, at a strong resistance zone, on the 1 hr chart for this pair. The completion of the ab=cd pattern is a bearish signal therefore we took a short position with take profits set on the green zones. FX:EURAUD