FX:EURAUD Euro Fx/Australian Dollar
We're looking at EUR/AUD for a potential for a significant trend reversal. The overall price structure seems to imply that another impulse may be on the way. We'd like to see a break of the recent lows, coupled with a break of the kijun sen to the downside. This will trigger a short position for us, with a stop around the 50% retrace of the recent big selling candle. Our plan with this trade is to follow price action and momentum, and to see how the pair does when it enters the cloud. If the selling power is unconvincing we will try to find suitable exits from our position, given the trading idea is one of significant impulsive bearishness which ought to be backed by momentum. This kind of trade is of course very risky, and so it is advisable to think about taking a smaller lot size than your usual, or scaling in to the position in some manner.