EURAUD | Sell

Hi,

We got a bearish candlestick pattern on the 4H chart called Evening Star. The rejection came from the EMAs crossing area and the old strong support area worked perfectly as a resistance.
Actually, the biggest action was made on the Daily timeframe and on Friday. At the moment, the current price action just confirms Fridays bearish Engulfing close.

The entire setup:
1. Daily Bearish Engulfing, it got a rejection from EMA 50&100 and 2016 worked as resistance.
2. After the Bearish Engulfing, a classical pullback which found resistance from the old support level and from EMAs - 50, 100, 200.
3. It got a rejection from them and the rejection ended with a bearish candlestick pattern on the 4H timeframe - Evening Star.
4. The Evening Star closed below the round number and basically, it is ready to go into the lower levels :)

If the price starts to move inside the descending channel then the major target should stay around 1.60700


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Regards,
Vaido