EURAUD | Perspective for the new week | Follow-UpAfter enjoying 200pips move on four different occasions (a total of 800pips) since my last publication ( see link below for reference purposes); we are at a juncture in the market for selling opportunity as Buyers find it difficult to penetrate and breakthrough AU$1.57000 zone in the last 3 months.
On the weekly chart; I am of the opinion that the third wave of a Bearish momentum that began mid-March 2020 is about to explode again after noticing the appearance of a converging trend line holding a consolidation phase in the last couple of months.
The successful Breakdown of Key level @ AU$1.56200 followed by multiple rejections of this zone (Supplication area) signals the possibility of Seller's turning the table for a nosedive as the value of the Aussie has a tendency to soar in the coming week(s).
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Supply & Demand | Pennant
Observation: i. Bearish Pennant: a consolidation period with converging trend lines formed after a Bearish Impulse leg (Flag-pole) is expected to be followed with a breakout movement in the same direction as the initial Impulse leg.
ii. In as much as I anticipate a Breakdown of the converging trendline to the downside, the key level @ AU$1.56200 shall be a yardstick in the coming as anywhere below this level seems to be a safe haven to trigger an entry.
iii. I shall anticipate adding to my position at the Breakdown/Retest of AU$1.55000 area in the coming week(s).
iv. CAUTION: Please note that a Break above AU$1.56500 shall render this setup invalid and reverting to my previous publication (see link below) becomes necessary for a rally continuation... Trade consciously! :)
Trading plan: SELL confirmation with a minimum potential profit of 400 pips.
Risk/Reward : 1:6
Potential Duration: 7 to 15 days
NB: This speculation might be considered to make individual decisions on the lower timeframe.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
