EURAUD Potential Bearish Reversal

Trade Idea:

EURAUD tested and quickly rejected a move above the final resistance level of the bullish trend , that spans all the way back to the end of 2017. The move to test final resistance level was a direct result of the trade war escalation. Nevertheless, the fact that price is very responsive to the final resistance level indicates that the trend is very much intact. In addition, don’t forget that earlier this week Royal Bank of Australia didn’t cut rates which was a big surprise to the market. Therefore, with everyone so focused on trade wars, it’s very possible that the market hasn’t priced this in yet.

Chart:

Trade Details:

Positioning: Short
Time frame: Daily
Length of Trade: 1 to 3 weeks

Entry: Between 1.6700 to 1.6780
Stop: 1.6850
Exit: 1.5900

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