Analysis for swing traders:
EURAUD now inside major resistance shadow (see explanation for shadow below). Zooming out the pair resembles a potential head and shoulders chart pattern with price at right shoulder. Zigzag reveals trend as up-down-up so look for down as next leg.
Analysis for day traders:
Continue long cautiously in line with current white week candle.
Notes: Technical Analysis states that previous turning points offer future potential support resistance zones.
1. Attach a horizontal line at each turning point in the past 12 months on weekly chart.
2. These lines leave a shadow.
3. Shadows are not evenly dispersed but tend to be clustered.
4. When multiple shadows confluence in a tight range, there is a dark shadow which will provide strong support resistance.
5. Look for dark shadow to offer next turning point.
6. Price will move quickly through empty spaces or bright areas.
EURAUD now inside major resistance shadow (see explanation for shadow below). Zooming out the pair resembles a potential head and shoulders chart pattern with price at right shoulder. Zigzag reveals trend as up-down-up so look for down as next leg.
Analysis for day traders:
Continue long cautiously in line with current white week candle.
Notes: Technical Analysis states that previous turning points offer future potential support resistance zones.
1. Attach a horizontal line at each turning point in the past 12 months on weekly chart.
2. These lines leave a shadow.
3. Shadows are not evenly dispersed but tend to be clustered.
4. When multiple shadows confluence in a tight range, there is a dark shadow which will provide strong support resistance.
5. Look for dark shadow to offer next turning point.
6. Price will move quickly through empty spaces or bright areas.
