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NEW TRADE ALERT: Rally to Trigger EUR/AUD Short

Last updated 4/8/2009 1:20 PM EST (GMT -5) 0 Comments - Add your comment

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FX360 Technical Analyst Staff

Technical Analyst, GFT

The EUR/AUD has been under strong selling pressure since mid-March dropping approx 1,400 pips recently testing ~1.85 support. A bearish Gartley pattern setup has been identified with pattern completion projected near 2hr bear trendline resistance near 1.88.  The key is for prices to rally to the projected entry of 1.8799 without dipping below point C at 1.8593 in which case this particular trade setup will no longer be valid. Any gaps or wide-ranging candles prior to entry (assuming point C holds as a bottom) will also invalidate this particular setup.

That said, we're looking to sell the EUR/AUD at 1.8799 with stop-loss at 1.8915. Initial profit target of 1.8684 (T1) is currently set just above 61.8% of CD. More conservative traders may wish to move stops to break even and/or take profits just above 38.2% of CD currently projected near 1.8730 (bid). Our final profit target sits at 1.8459 (T2) currently set just above 161.8% of CD.

2hr Chart - Looking for rally to trendline/Fib convergence where bearish Gartley is projected to complete	1hr Chart - Bearish Gartley pattern projected to complete at D

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