EURAUD - Short Trading Idea on the 4h Charts.
Introduction:
Please read the full post before considering taking action.
We have been witnessing increased volatility on both EUR and AUD all across the board, mainly because of the high deviation on the actual and consensus numbers when news are released, but it has still been following technical parameters. What appeared to be a breakout on EURAUD on mid-april turned out to be a fakeout, a lower low if you will, but a full reversal took place and we are now preparing our shorts with a couple of longs still beind held.
On the charts we see an ascending wedge being formed, with a regular bearish divergence on the RSI, which indicate underlying weakness on the bulls' strength and a possible shift on trend direction. We don't expect this move to happen suddendly or with too much strength, so we are scaling our orders and are prepared to hold this positions for quite a while, specially since EURAUD shorts are paying positive swaps.
How to Proceed:
Our team opened a short here, with scaling orders following the trendline all the way to the 1.6125 price range.
Take Profit:
Our targets here are 1.58 and 1.57. Those targets, however, can be dynamically changed, i.e., according to live price action, should circumstances vary.
Stop-loss (Invalidation of Analysis):
Our stop-losses here, since swaps are positive, are very flexible, but set in the 1.62 range.
Side-notes:
Please keep in mind that the markets have been reacting strongly to news these days, specially on smaller majors, such as the NZD and the AUD, which could create instability. We are trading the whole forex system here, not only a pair. These positions should be watched closely.
Please leave your comments below to inspire us to continue our work and don't forget to follow us! Feel free to send us a direct message with any doubts you might have and experience a great trading session!
Please read the full post before considering taking action.
We have been witnessing increased volatility on both EUR and AUD all across the board, mainly because of the high deviation on the actual and consensus numbers when news are released, but it has still been following technical parameters. What appeared to be a breakout on EURAUD on mid-april turned out to be a fakeout, a lower low if you will, but a full reversal took place and we are now preparing our shorts with a couple of longs still beind held.
On the charts we see an ascending wedge being formed, with a regular bearish divergence on the RSI, which indicate underlying weakness on the bulls' strength and a possible shift on trend direction. We don't expect this move to happen suddendly or with too much strength, so we are scaling our orders and are prepared to hold this positions for quite a while, specially since EURAUD shorts are paying positive swaps.
How to Proceed:
Our team opened a short here, with scaling orders following the trendline all the way to the 1.6125 price range.
Take Profit:
Our targets here are 1.58 and 1.57. Those targets, however, can be dynamically changed, i.e., according to live price action, should circumstances vary.
Stop-loss (Invalidation of Analysis):
Our stop-losses here, since swaps are positive, are very flexible, but set in the 1.62 range.
Side-notes:
Please keep in mind that the markets have been reacting strongly to news these days, specially on smaller majors, such as the NZD and the AUD, which could create instability. We are trading the whole forex system here, not only a pair. These positions should be watched closely.
Please leave your comments below to inspire us to continue our work and don't forget to follow us! Feel free to send us a direct message with any doubts you might have and experience a great trading session!
Trade active:
All orders filled.
