The pair is currently undertaking the process of forming a descending triangle. For the longer term traders the idea is to wait for the break of the triangle (can be both ways, but a higher probability on the downside as the longer term RSI readings are extremely overbought). For day traders there is a good opportunity to go short on the break of the short-term trend line (1h candle close) targeting the bottom of the triangle.
Who agrees with my trade set up, please follow this idea. I will be updating it as the triangle is being formed over the next 2 - 3 days.
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Guys, sorry for the heading EUR/AUD, (GBP/NZD) :)
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By the way - EUR/AUD - Symmetrical Triangle - 1 hour chart
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Despite the fact that the the overall the idea was not valid as initially charted (primarily to the extreme weakness of the USD across all markets = US/China trade war tensions escalation) no trade has been opened as the 1 hour candle did not close bellow the short-term trend line. Longer-term traders could go long from the current levels. Personally, I would not enter the trade as my initial projected pattern was violated and I still think that the longer term risk is on the downside.
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Thanks to all who liked and followed my idea!
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A quick update: The pair finally broke the support line as initially anticipated and after the 1h candle close, I have entered the trade with the SL just above the 1.99 level targeting 1.97 -1.971 level. Still expect a retrace move to the previously broken support.
The new trade idea, for those who missed the initial break is to try to catch the retrace move to the support or/and 78.6% Fib retracement.
The 2.00 level is both technically and psychologically crucial, thus a further price decline is expected.
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Furthermore, entered the trade with just 25% of the initially anticipated risk level because my initial pattern was not respected.
Trade closed: target reached
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Not as initially expected, but finally the target reached.