On this weekly chart, we are drawing Pitchfork channels on EURAUD.
On the monthly EURAUD chart, we can see that the pair is turning lower for a possible test of 1.4000-1.4200 zone of the uptrend Pitchfork channel and its uptrend channel line after the rejection from a 1.6000 level which is also the 50% from the Median line. From here we have a new downtrend channel formed visible on a weekly chart.
We have used the combination of the top-down trading analysis and the Andrews Pitchfork channels to get to a trading entry stop loss levels and targets. On a weekly chart, we have downtrend pitchfork channel formed and we are seeing a pullback into the 1.5500 level.
On the daily chart, we can identify a potential downside continuation pattern with the pin bar rejection candle. Look early next week for a new bearish candle which will confirm a downside continuation into the 1.5000 level. The stop loss should be above the 1.5560 level and a first target should be 1.5100-1.5200 zone.
Happy trading! (click on the chart to enlarge it)
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