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BoonHooi
Apr 16, 2017 2:30 AM

EURAUD - Continues on the downtrend, Bullish Bat looming Short

Euro Fx/Australian DollarFXCM

Description

EURAUD has been on this huge downtrend since June 2016, quite clearly seen here on the daily charts. I am looking to go with the trend at least up to the Bullish Bat Pattern completion at around 1.3704

Pattern Identification
Let's not fight the downtrend and look to go short. However price will not go down in a straight line all the way down. I have identified a bullish Bat pattern completing at 1.37

Trade execution
I am looking for a short when the price retraces up to the support turned resistance TL

Comment

Zooming into the smaller time frame : The H4 RSI is approaching the oversold region. Hence I am expecting a bounce or a pause in this down move.

Then I will be looking to go short towards the completion of the Bullish Bat pattern

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