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| EURAUD - Daily Chart |
I have identified a possible full Elliot wave completion - a 5 wave impulse down move, followed by a 3 wave retracement. 1-2-3-4-5-A-B-C. The ABC pattern has formed a rigid channel, which has been broken to the downside. The trend line break, confirmed by resistance met at the 23.6% RED trend origin and the 61.8% GREEN trend origin, as well as the possibility of a new downward impulse wave, suggests a very viable long term trade on the EURAUD. Since this is the daily chart, stop loss will be large, so small lot size is required.
I have entered this trade at market order.
Entry: 1.36737
Stop loss: 1.40000 (-327 pips)
Target 1: 1.33474 (+327 pips)
Target 2: 1.28000 (+874 pips)
My initial target is a 1:1 ratio, and my second target is a 2.67 ratio. The stop loss for this trade is huge for most traders, but this is more of a long term trade that could be open for more than a month. Please enter trades that have large stops with the appropriate lot size, to avoid huge losses.
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