EUR/AUD: Remains Bearish, Pushing For New Lows

On June 30, I posted on social media “EURAUD Sold 2nd position at 1.6308, with Stop Loss at 1.6448."

The chart below was also posted on social media, showing that a bearish market pattern (light blue) terminated at the point (D) June 12 high, which signaled to traders that bears were trying to take back control. A bearish divergence pattern (purple) formed on June 29, which also signaled for a move lower.

Dynamic (black) and static (light blue) resistance, plus the 0.618% Fib. level (brown), added to a reaction lower from the second orange box within the June 29 confluence zone. The momentum indicator crossed below the 100 level, while price broke below the trend line (dark blue), confirming the second "sell" entry. I called for traders to sell EUR/AUD, and only a move above the second confluence zone would invalidate the "sell" trade setup.

The stop loss was set above the second confluence zone, targeting the pink 1:1 RR and 1:2 RR targets. EUR/AUD has yet to hit these targets and I continue holding sells, as I expect the pair to hit them this coming trading week.

EUR/AUD Four-Hour Chart for June 30, 2020 (Second "sell" Entry)

The EUR/AUD four-hour chart below was posted on social media on June 16, calling for the first entry "sell," with stops above the June 12 high. The price has yet to hit green targets below, and we expect the pair to hit them this coming trading week.

EUR/AUD Four-Hour Chart for June 16, 2020 (First "sell" Entry)

Of course, like any strategy/technique, there will be times when the strategy/technique fails, so proper money/risk management should always be used on every trade.