04 Jun EUR:AUD – Looking To Re-Instate Partial Short
As you know, half of last Week’s EUR:AUD short was covered ahead of a bullish set-up on shorter time frames that could lead to a 2nd short entry.
On 4 hourly and Daily time frames, the areas detailed in the following charts show levels where resistance should be prevalent if the move down is to resume.
4 Hourly chart shows an old trend line that would offer an ideal short on confirmation of a failed back test. Note that it’s fairly common to see 2 back tests of such set-ups on FX pairs and therefore if entering short on the first back test, stops must allow for a 2nd failed back test which will inevitably be higher up. Note that this is an old trend line and it’s current position may not be 100% accurate as it was violated on a previous occasion:
Daily chart shows resistance within the area of the 200 MA that will ideally lead to a Head and Shoulders top arrangement, again in an ideal world this would coincide with the 4 hourly trend line back test: