EURAUD Week of Nov 8 – 12 Outlook
Recap of last week
Did not post a chart on this pair last week as it was not clear if we were having a spike and ledge or just a pause before running higher.
Then early in the week it became clear we had a spike and ledge and it failed to hold up. Shorting this pair was not hard as the 1-2-3 sell on 4 hour was very pronounced. The only concern at the time was that the week was about to wrap up in a day could it go all the way to break the current week low at the time.
It did and made up for the wait!
Next week outlook
A bounce from last week low/close should not exceed the yellow zone much if it is going to reach 100% downside monthly expansion. For the target red zone to be reached, we should not see price prints above the spike and ledge bottom from the prior week at 1.4050 area.