Trading Signal: EURAUD (long)
Our trading system has issued a buy signal for EURAUD.
Here are our trade specs: Entry 1 at the current price of 1.1940. Limit: 1.2310 Stop: 1.1746
We are prepared to add leverage at 1.881 for 1.5 times that used in the first trade and again at 1.1813 using leverage equal to that in the first two trades.
This pair has been in a long decline from October 2008 and from a momentum perspective is now appearing oversold on all but the 8-hour chart. This suggests one or two more bottoms may still be in store; however, we are expecting a rise of at least 2% based on current momentum readings. The price action of January to October 2011 looks indicative of a fourth wave, leading us to interpret the action since October as a terminal fifth wave.
Zooming in on the past 10 months, the market has traced out a textbook 5-wave down sequence since October 5, 2011. Standard wave relationships lead us to estimate this decline ending somewhere between the current price and 1.1852. As the ensuing correction should carry to at least 1.3000, given that our trading system has already issued a buy signal, we are not inclined to wait to enter this trade.
Longer-term, we believe the entire decline from 2008 will see at least a 38% correction, bringing price into the 1.5400-1.6500 range.
saigonfx 