Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

EUR/AUD trading plan

|Includes: AUREF, Euro Resources S.A.B (EROFF), FXA, FXE

Summary:

EUR/AUD has been in an intermediate downtrend for past three weeks now and has been consolidating and dropping on a 540/720 min chart. It has recently completed it’s last consolidation where it failed to penetrate previous High of 1.5275. It is setting up nicely for another leg down. Look for opportunities to sell this pair.

image

Plan:

Go short on breach of 1.5140 to add to existing positions. This would be a continuation trade. Look for a fresh cross of MAs on a smaller time frame with the two MAs kissing together on a bigger time frame like they are at this moment. Validation of this trade is based on overall Euro weakness against Commodities and specially Gold. S/L will be set to 1.5260 (120 pips) but this one has huge profit potential. No one know how far it could drop since it is in historic territory.



Disclosure: SHort