EURAUD Minor Forex Pair

The EURAUD minor Forex pair has been experiencing a period of consolidation on the daily chart, exhibiting equal highs and equal lows, indicative of range-bound trading for slightly over a month. Previously, the price was in an uptrend leading up to the new year; however, it has now stalled within a range, fluctuating between 1.65000 and 1.68000. 

4-Hour Correction 

The price did break out of a 4-hour correction on Monday, Jan 27 but it failed to take out the previous higher high. As we can see below, the bullish impulse that broke out of the 4-hour correction showed signs of weakness and now we have more bearish pressure that could take us down to the lower lows of the consolidation.

Can We Identify a Trading Setup for Today?

The current price action has responded to the high points of the consolidation phase, specifically at the 4-hour supply area. Additionally, the price has broken the higher-low structure, indicating a bearish momentum. Moving forward, I am looking for well-defined ABC waves to retest the broken higher-low structure. This will create a potential opportunity to enter a short trade aimed at targeting the lows of the consolidation range.

I will provide an update as soon as we get more price action around the broken structure. Thank you for your attention.

Update: 1-hour chart

The price is currently undergoing an ABC correction and is respecting the Fibonacci levels. We have a valid C wave, but I would prefer that this C wave continues up to the 0.5 Fibonacci level before we break out of the correction. Keep an eye on this price action for the rest of the day, and if this scenario plays out, we could have a potential entry point, and then trade back down to the low of the range.

I will provide an update as soon as we observe more price action around the correction trendline. Thank you for your attention.

Final Update: Feb 11

I opened this trade on February 4th and we finally hit my target on February 7th. That is a bit longer than I thought, but it was nice to see the price go down to my take profit mark at the start of the New York session.