EurAud Short Setup Trade Plan

Bias
Not that I am generally a bear on the Euro, I found this pair showing signs of bearishness.
-Green Horizontal rectangles drawn in show levels of support
-Pink Horizontal rectangles drawn in show levels of resistance

EurAud Daily Chart

First day of the month, new monthly pivots, we saw price opening just below MMP @ 1.43344. It has been ranging between support (@ 1.41314) and resistance (@ 1.44685) levels for over a month now. It has already made a triple bottom and currently moving up towards resistance. An upside or downside breakout is eminent. As a bear, I will be looking for an opportunity to sell at resistance which coincides with the Monthly Pivot Point.

EurAud H4 Chart

On this chart, it shows that the pair is trading within a descending triangle with a key level of support @ 1.41335. Having had price come off this level of support earlier this week, we saw a psych level of 1.44000 acting as a strong level that price failed to break. Price is currently at the 200EMA, confluence, which suggest a change in direction. This here is an opportunity to sell even though I am not confident about. Should price break through the 200EMA, an immediate resistance in a form of a trend line is seen. Another selling opportunity, But Wait for confirmation signals.

EurAud H1 Chart

It looks like a head and shoulder reversal pattern is forming, with shoulders at a resistance level of 1.43712. Should this be the case, a break at the neckline and a retest at the role reversal will signal a further bearish move

5 thoughts on “EurAud Short Setup Trade Plan”

  1. Maryna says:

    Hi Tsholanang, I see on your post that you say your bias is not bearish on the EUR? When I look at the weekly/Monthly charts this pair has been bearish for a long time now and a very low prices with a huge bearish rejection candle on the Daily Chart that was formed on 9 November. Can you perhaps explain why you are not bearish on EUR please.

    1. My Sentiment regarding this was solely based on this setup I saw. I specialize more on kiwi crosses, and I am a bull on kiwi. So regardless of what my bias was or could have been, It would be momentarily based on the kind of setup I see and would be looking to trade it accordingly.

  2. Maryna says:

    Thanks Tsholanang, I thought so, but just needed clarification that you were specifically referring to EURAUD.

  3. I concur with Tsholanang, I even think Euro will take more beating and trend lower towards the 1.36 and eventually the 1.30 tag where there is strong support. Lets short the EURAUD at every high in the 1HR chart

  4. Maryna says:

    Thanks Dalmas, but my question was related to his bullish stance with EUR which he clarified.

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