Hello Traders,
Here is the Top-Down Analysis of EURAUD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 48 - Nov 23
M > Market tested monthly resistance and after rejection dropped to test rising support trend-line.
W > Price has been dropping for past 4 weeks, filling in wick of previous candle.
D > Price created double bottom at daily support though it is still continuing with LH and LL. We can see an M formation and its neck can be our first bullish target.
As per COT EUR saw addition of both Long and Short, reducing net positions further. EXY weakened during the said period however it slightly recovered last week. AUD saw further closure of Long and closure of Short, reducing net positions (now in -ve). We can see closure of Long and addition of Short in last couple of months, making net positions move from 16K to -08K. AXY weakened during the said period but recovered slightly last week.
Institutions, since August, have been reducing their EUR portfolio of Long and increasing Short positions, with about 60K Long positions closed and 19K short positions opened so far. In long term we can expect weakness of EUR to continue however AUD is also weak hence correction to the upside can be expected.
4H > Price has started making HH and HL and with creation of a HH in Daily time frame we will get bullish confirmation.
Pair Correlation > EURAUD has negative correlation with AUDCHF, AUDUSD, AUDJPY and AUDCAD on daily time frame.
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 share your view or ask questions.
Thank You
AP17FX
Here is the Top-Down Analysis of EURAUD (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 48 - Nov 23
M > Market tested monthly resistance and after rejection dropped to test rising support trend-line.
W > Price has been dropping for past 4 weeks, filling in wick of previous candle.
D > Price created double bottom at daily support though it is still continuing with LH and LL. We can see an M formation and its neck can be our first bullish target.
As per COT EUR saw addition of both Long and Short, reducing net positions further. EXY weakened during the said period however it slightly recovered last week. AUD saw further closure of Long and closure of Short, reducing net positions (now in -ve). We can see closure of Long and addition of Short in last couple of months, making net positions move from 16K to -08K. AXY weakened during the said period but recovered slightly last week.
Institutions, since August, have been reducing their EUR portfolio of Long and increasing Short positions, with about 60K Long positions closed and 19K short positions opened so far. In long term we can expect weakness of EUR to continue however AUD is also weak hence correction to the upside can be expected.
4H > Price has started making HH and HL and with creation of a HH in Daily time frame we will get bullish confirmation.
Pair Correlation > EURAUD has negative correlation with AUDCHF, AUDUSD, AUDJPY and AUDCAD on daily time frame.
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 share your view or ask questions.
Thank You
AP17FX