Market structure on the higher and lower time frames on the EURAUD pair can be signalling for more downside in the coming new trading week. Only a break above the April 26 2023 high will invalidate the bearish scenario and could push the pair higher to the next zone where the weekly chart FVG (Gray box) could find more sellers.
The charts below show that a move lower is possible on multiple time frames. Using multi time frame analysis can allow a trader to catch a trade setup based on the market structure order flow.
Multi Time Frame Combinations:
Swing – Higher Time Frame: Weekly/Daily – Lower Time Frame: 4 Hour
Intraday – Higher Time Frame: 4 Hour/1 Hour – Lower Time Frame: 15 Minute
Day Trading – Higher Time Frame: 1 Hour/15 Minute – Lower Time Frame: 5 Minute/1 Minute
EURAUD Weekly Chart May 28 2023
On the Weekly chart price is respecting the supply zone (pink box) and has also tagged the monthly supply level (black dash line) which was followed by a reaction lower. Price has also swept buyside liquidity fuelling the sellside.
EURAUD Daily Chart May 28 2023
Daily chart can see a visible break below the last lower high (Red line CHoCH) signalling a change of character to the downside. Price taps the Daily supply zone (green box) and respects the zone by forming a bearish daily candle.
EURAUD 4 Hour Chart May 28 2023 (Market open)
4 hour chart at the market open, price gaps lower and also breaks below the last lower high (Red line CHoCH) signalling a change of character to the downside. A retrace higher to 4 hour supply zone (blue box) can find more sellers to push the pair lower.
Only time will tell what EURAUD will do but for now will stick to the bearish scenario as long as the order flow respects the 4 Hour supply zone.
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. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
At Elliottwave-Forecast we cover 78 instruments (Forex, Commodities, Indices, Cryptos, Stocks and ETFs) in 4 different time frames and we offer 5 Live Session Webinars everyday. We do Daily Technical Videos, Elliott Wave Trade Setup Videos and we have a 24 Hour Chat Room. Our clients are always in the loop for the next market move.
Try Elliottwave-Forecast for 14 days !!! Just click here –> 14 day trialBack