Forex Trade Idea: EUR/AUD Short-Term Pullback

I’m trying my hand with the comdoll crosses again this week and I’ve got my eyes locked on this neat short-term pullback on EUR/AUD! What do you think of this one?

EUR/AUD 1-hour Forex Chart

EUR/AUD 1-hour Forex Chart

With all this talk of Greece possibly exiting the euro zone or being unable to receive its next set of bailout funds, I’m really considering shorting the euro these days. While data from Australia has failed to impress, it looks like the Land Down Under is still in a fundamentally stronger position compared to the euro.

I’m looking at this falling trend line forming on EUR/AUD’s 1-hour time frame since it lines up with an area of interest and the 50% Fibonacci retracement level. Stochastic is already in the oversold area though, so a quick bounce might still be possible before the pair resumes its drop to its previous lows near 1.4350.

I’m planning on shorting at the 1.4500 area with a stop above the trend line past 1.4600. I’ll be aiming for the previous lows around 1.4350 first then I’ll consider adding to my position and trailing my stop if price shows further downside momentum.

Think this one will work out? As always, I look forward to reading your feedback on my trade ideas!

Cheers,

Happy time

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  • Davis

    Im looking to go long on this one at 1.4371 since there is double bottom formig with bullish divergence and all of that in the context of previous majore structure level

    • Yikes, did you take a long position?

      • Davis

        nope. I didnt since it did not make a valid double bottom.

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  • pipslk

    Nice trade idea. Keep it up

    • Unfortunately I wasn’t able to keep this one open for long!