Got a nice +30 pips on the long setup for this pair the other day. Now price is resisting against the descending trend line and showing some bullish exhaustion. I will now short this because the overall trend is still down. However, we could be in the midst of a potential trend reversal with the bullish divergences on 4hr and above which is why I am only targeting back towards the bottom of this triangle. If we get a breakout out of this triangle to the upside, I will close out and flip back to long.
Trade closed: stop reached:
As I suspected, it seems EURAUD is beginning to reverse its downtrend and breaking out of the descending trend line is the first step. Awaiting further confirmation, but so far this appears to be the case
Comment:
I re-entered when I saw the price action confirm it wasn't ready to break out. I apologize for not updating, I was away from my computer. Anyways, this trade looks like it is working out so far