Generated by interplanetary shocks or solar wind pressure pulses, shock aurora has transient, global, and dynamic significances and provides a direct manifestation of the solar wind‐magnetosphere‐ionosphere interaction. As a part of a series of studies of the shock aurora, this paper focuses on the interaction at the morning magnetopause and its auroral manifestation at ~06 magnetic local time, where the velocity and magnetic field shears dominate the interaction. Flow shears can generate wave‐like structures inside a viscous boundary layer or even larger‐scale vortices. These structures couple to the ionosphere via quasi‐static field‐aligned currents or via kinetic Alfvén waves. Potential drops along field‐aligned filaments may be generated accelerating electrons to form auroral manifestations of the structures. A shock aurora event at dawnside is used to test this scenario. The findings include moving auroral streaks/rays that have a vertical profile from red (at ~250 km altitude) to purple (at ~100 km). The streaks moved antisunward along the poleward boundary of the oval at an ionospheric speed of ~3 km s−1. It was mapped to the magnetopause flank at ~133 km s−1, which was consistent with the observed speed of the magnetopause surface waves generated by the Kelvin‐Helmholtz instability. The calculated field‐aligned potential drop using Haerendel's analytic model was ~5 kV that reasonably explained the observations. The results support the above scenario and reveal that magnetic and velocity shears at the flanks of the magnetospause may be the main cause of the fast moving shock aurora streaks.