justatrader

EURAUD - Divergence based trade

Short
FX:EURAUD   Euro / Australian Dollar
1. Divergence to RSI formed and at the top price made a bearish inside bar and dropped.
2. Price broke through the short term trend line as well
3. Arrows denote the Highs and Lows within the previous up leg
4. Corrective rally to test the break out of the trend line , which should form a lower high (confirming the medium term down trend).
5. Sell to divergence target of 1.4598