EURAUD Gives Perfect Pullback for Swing Traders to Enter

FX:EURAUD   Euro Fx/Australian Dollar
104 1 0
A great setup here on EURAUD             that should delight many swing traders. Here's what we see:

1. Price is in a clear downtrend, below 50 SMA which in turn is below the 200 EMA
2. Price makes a 61.8% pullback from recent swing high to swing low
3. This 61.8% level intersects with the 50 SMA
4. Candlesticks show signs of exhaustion

All these factors, in addition to the fact that we are seeing signs of AUD strength and EUR weakness against other currencies , make this an easy decision to short the pair. I'm set to enter at 4438, with my stop at 4498 and my target profit at the previous lows of 4218. I'm risking 60 pips to gain 220, which gives me a reward/risk ratio of about 3.67.
Beautiful level on level in supply, I would say it already has made its move to the downside from that area and we break it as we are low on the curve, but time will tell. Nice setup either way.
Ideas Scripts Chart
United States
United Kingdom
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out