EURAUD - Look for Continuation Short 1:5! Building upon the previous analysis of EURAUD as shared in the link:
The recent price action indicates a ranging phase before a potential break of the previously identified Monthly Support Level. Considering the principle that larger time frames involve longer accumulation phases before transitioning into trending phases, it seems plausible that a downtrend may be in the making. The two strong rejections and the formation of a Double Top Chart Pattern, a reversal pattern, support this observation.
In navigating this scenario, exercise patience and adopt a waiting approach for the price to convincingly break the monthly support. Seek confirmation through a strong breakout with a closed body and be vigilant for the crucial retest phase before considering any moves.
Given the onset of a new Yearly Candle, it's advisable to allow the price to establish its own structures, especially after most investors have positioned their orders. Stay tuned for further developments.
