EURAUD Top-Down Analysis

Hello Traders,

Here is the Top-Down Analysis of EURAUD (Monthly, Weekly, Daily for direction and 4H for entry) for

Week 41 - 05 Oct

M > Price dropped to monthly support level and after rejection started upward move to reach and test monthly resistance level.

W > Price created W formation and as expect price to drop and test the neck before continuing with bullish move. Price is respecting structure of rising channel.

D > Price faced rejection at resistance level and dropped with a long bottom wick on reversal candle. Price dropped to complete W formation. We can see shooting star reversal candle. Price can create a range, while moving up, that got created when price was near resistance level and it is very much possible for price to consolidate near that level again.

As per COT EUR saw closure of more Long than Short, reducing net positions; EUR was very weak for the said week. EXY was positive last week though it reached resistance level and dropped. AUD saw closure of major Long and addition of few Short positions, reducing net positions, N-R saw closure of both Long and Short positions and Commercials saw addition of Long and closure of Short. AXY was weak for the said week however it improved its position last week.

4H > Price is creating HH and HL, confirming reversal of trend. We have a target little below resistance trend line.

Pair Correlation > EURAUD has positive correlation with USDCAD and EURNZD and negative correlation with AUDCHF, AUDUSD, NZDUSD, NZDJPY and AUDJPY.

This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section you can share your view and ask questions.

Thank You
AP17FX