EURAUD Structure & Elliott Wave Shorting Opportunity

To start this analysis we will have a look at the daily chart. As you can see we have been in a downwards sloping channel for the past few months. We have now approached the top of the range meaning we are looking for sell opportunities and one has perfectly been presented. We are at strong weekly resistance that has been respected numerous times as seen in the chart above. RSI has been showing us some divergence on the daily chart indicating a reversal. EUR weakness supports the idea that this chart is soon to be sold of down to around 1.3500 or so which is marked by the small red box.

Now we don’t want to enter a trade blindly as that rarely works out. So our reason for entry will be a break of this trendline on the 4 Hour chart. This would indicate that the pullback is over and it is time for the bears to take over. As you can also see I am counting this as the correction to the downward impulse move, meaning we are expecting another strong bearish move to follow, probably stronger than the first. The wicks are also showing strong rejection from the weekly level (red horizontal zone). We will continue with updates throughout the week on the Telegram which can be found under the “Signal Service” tab on our site.

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