EURAUD continuation down?

Good morning Dynamic Traders

I hope you've all had a fabulous weekend. Thank you to my fellow bloggers for such a warm welcome!

Today I am looking at EUR/AUD. The major trend is down and price recently broke it's consolidation by continuing south. Price seems to be finding comfort around the 17000 mark - obviously a psychological barrier for buyers and sellers. We saw price do a FBO and now with its second attempt out of the zone, price seems to be doing a pullback and retest of support as resistance. So let's stack it all up - the RN, support potentially turned resistance and the trend as our friend - odds are in our favour for a continuation down.
















Let's go down to a lower timeframe to see if we can strengthen our odds and find any more clues. On the 4hr chart we can see there is a nice squeeze formation and whilst writing this, we have a doji forming which is tagging the TL resistance. This may even be a DT formation. With the RN and VI also looming above this adds to our edge even further.
















For the more aggressive trader, entry can be taken on a breakdown of the squeeze on the 4hr. I'll be waiting for a break of low before entering and applying ESLT. This is going to be an interesting one to watch this week.

Here's to great trading!

Sonia Molina