Will EURAUD make a Reversal?

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I love price patterns and there’s an interesting Price Pattern on EURAUD at the moment. It is currently at an all time low exchange rate and I personally like that looks of the channel that has formed.

The following is a EURAUD Weekly chart with multiple touches on the top and bottom of its channel. The only eyesore on chart is the false break at the bottom of the channel around Dec 2010. Either way, there is enough touches to keep me interested.

On top of that, the following reasons make me even more excited:

  • Price is sitting at 1.618 Fib Extension (drawn from the low Jan 2012 to the high of May 2012) level
  • Low Test Bar on the weekly bar which closed on the 3rd of Aug

Price often reacts to the above factors. Nonetheless, the key is to remain neutral as anything could happen. So my decision is to wait for price to reveal itself, I will continue to wait for either a continuation or a reversal Price Action set-up  before taking a position.

 

Thank you and happy trading for the week ahead!

 

 

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