Guest Post by Nicola Delic
The Euro after a slide against the Aussie Dollar making an attempt to correct higher. However, the trend is still down and we might witness more losses in EURAUD in the near term. There is a potential head and shoulders pattern forming on the 4-hours chart, which if turns out to be valid could set the pair for a downside move. Moreover, there is a chance of an A-B-C pattern formation, pointing more losses towards the 1.4300 support area.
In order to enter a sell trade I think we should wait for the EURAUD pair to break an important support trend line formed on the hourly chart.
Technical Analysis
H4– Chart representing the Head and Shoulder pattern pattern and the possibility of the EURAUD pair heading towards 1.4300.
Entry:
H1– We can enter a sell trade once the EURAUD pair breaks and settles below the highlighted bullish trend line.
Target 1: 1.4600
Target 2: 1.4300
Stop Loss: Above 1.5070
Video Explanation:
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Perfect!!!