A head and shoulder pattern has emerged on the 1-hour chart for EURAUD. I have identified a potential take-profit zone for this trade noted by the green horizontal line while expecting it to possibly follow the yellow trendline heading to the downside.
With the impending US economic bust that is about to happen when the Dollar bursts (based upon the DXY and US30), I'm bearish on UJ for this week.
I see it continuing in an Elliot wave pattern to retest its low point from early last week. I want to see if price respects that low point or breaks below it for the continuation.
I'm waiting to see if price breaks this bearish trend. If it does, we could see some massive moves. If it doesn't break and respects the trend, price may continue heading for a 3 year low.
Price is currently at a key level but still within a reversal zone. I do expect that price will push out of the zone for the short position but may go higher before doing so. I have identified 3 key levels below my entry for a sell stop that could be considered take profit areas.
