I am going short again on EURAUD

• 2019-08-13
• Traiding Idea

EURAUD has reached again to one of its strongest resistance zone. If you remember afew weeks ago we went short on EURAUD and we got two times profit from this position. the Price is again in that area and touch the R3 Monthly , very strong resistance area. In the past few years price fell down sharply after reaching this point in several occasions. Now again market is in this area.  if you look at osilators we have a divergence on RSI and is overbought, Stochastic has been formed bearish too.

from the Elliot Wave prespective the price has finished a five impulse wave and then begun a correction ABC and rised again till fibo 261,8% of fifth Elliot wave of last uptrend. this level is very important and historical level and as you see the price has been droped since reaching this area. so we have couple of signals here for going short. from price action prespective we see a pinbar candle with long shadow and it means the buyers has lost the power pushing the price to upper level. so with considering all these signals i believe that a correction is happening.

From the fundamental analysis point of view, we had news about Euro from Germany and German GDP has been droped from 0,4% to -0,1%, that is an impoertant fundamental signals shows that somthings is happening and this signal will have alot of pressure on EUR.

Trading Tips: 

open short position from this Level and go down.

TP1: on R1 Monthly

TP2:on the long trem Trendline and @ Pivot Monthly