Big Picture

Price currently has a strong resistance zone hanging overhead. Unless it can breach this barrier, moving up will be difficult.

Monthly EURAUD Chart shows Strong Resistance

Pattern on the Day Charts

On the D1 charts, a familiar pattern can be seen.

Familiar pattern on D1 chart of EURAUD

• As a D1 pattern, price needs to head higher to have a WR trigger. Current setup is more of a TR.
• If price cannot close below the current support of F3 (refer to next chart) it might bounce up to test the higher of the two resistances above to complete a WR setup.
• A possible HS pattern can also be seen on the D1.

D1 Line Chart on EURAUD

Conclusion

• Price is at a strong resistance overall with a HS pattern seen on the D1 charts.
• If price can close below current supports, it has a chance to head lower. Otherwise, a higher Pt4 could be formed for a WR setup.
• It is important for bearish expansion to happen, ideally in H4 (Wk Boxes). In a case of bearish expansion below previous H4 box low, then there are various levels to note (and for price to close below), namely 15300, 15250 and 15200. These levels pose as immediate support

Jerome Lee

Last time, many things that I wanted were just dreams, now I see them as possibilities. I’m looking forward to own pent-house suite in Manhattan overlooking Central Park because forex trading with Tflow® makes it possible. Find me on Google+