EURAUD consolidating below recent highs – Another short trade pending

The price action this week has slowed from the impressive skyward trajectory of the previous trading week. Difficult to tell if this is a consolidation phase before resuming the bullish tone or a rollover in the making. Until we get a clearer picture of intent, I will be attempting to play this to the downside.

Important to point out that this doesn’t mean I think the Aussie is going to the moon from here. After all, I am still holding part of a short position from the highs in AUDUSD from 26th Jan and still fancy it lower in the med-long term.

No trade open as yet. Just a heads up to what I will be watching for going into today. I would like to see some weakness creep in soon in order to place a short position …………………. then again, the market could have different plans .

 

The H1 shows definite rejection candles at the peaks ( up to now ). The Head and Shoulder pattern is a little shabby, though not discounting it at this stage.

Worth noting that my successes over the last few days were shorting from when ( and after ) the price turned from the Head and the right shoulder formation.

I always like to get a jump on these type of patterns if I see one forming. —- Attempting to short on a ( possible ) right shoulder can prove to be a very good trade entry if the pattern holds.