The ADAUSD chart shows a strong bearish structure, marked by a completed Elliott Wave pattern. The trade setup appears well-structured; however, the lack of a decisive break below the Daily Open Line remains a critical factor for full bearish confirmation.
Key Analysis:
Elliott Wave Structure: A textbook 5-wave impulse pattern (1-5) is visible, followed by an ABC corrective wave. The "C" wave aligns near a key resistance zone, suggesting a potential bearish continuation.
Resistance Zone: The confluence of the main pivot line (H1 [4/8]) and EMA ribbon acts as a strong barrier to further upward movement.
Indicator Confirmation: Both the Forbex oscillators and MACD hint at bearish momentum, but the lack of follow-through below the daily open weakens the conviction for an aggressive short.
Potential Scenarios:
Bearish Continuation: A break below the daily open would signal confirmation, allowing the trade to progress toward the next key support zone near H1 [2/8] or lower.
Reversal Risk: Failure to break below the daily open could result in a bounce back toward the pivot or higher resistance levels, invalidating the bearish setup.
Pro Tip: Monitor closely for a decisive close below the daily open with increased volume for a high-confidence entry. If this condition is unmet, consider scaling back risk or re-evaluating the trade plan.
Disclaimer: This analysis is educational and not financial advice. Trade responsibly with proper risk management.Direct Link to get the tools you need : https://forbextrading.etsy.com
