Thursday, 26 May 2016

What’s Next for EUR/AUD?




Something very interesting is happening in the EUR/AUD daily and weekly time-frames. After a long move to the upside the pair has been consolidating sideways for the past two weeks. Usually that sort of sideways consolidation is a signal that the move to the upside will continue, but on the other hand we have a very well-formed shooting star candlestick on the daily time-frame, which is a part of said consolidation, as well as a very well-formed hanging man candlestick on the weekly time-frame and both of these candlesticks are signals for a reversal. The end result is that we have a pair of conflicting signals. Which one of them is the valid one? In my experience it’s usually the signal that occurs on the longer time-frame, i.e. the hanging man candlestick on the weekly time-frame.  By that logic, the pair should start falling and its next target will be around 1.5250.

2 comments:

  1. Thank you for pointing this out!Will keep it in mind!

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  2. Looks like is stuck in a range.

    ReplyDelete