EUR/AUD: Looking to set shorts for move back to 1.2100
This pair has been leading the way over the last 4 or 5 weeks and the hedge fund community has been busy jumping on board, hoping for a trend reversal. We’ve seen a 700 pip rally in this time and I think we may be due for a correction. There’s a potential short-term topping formation developing and this is happening at a 50% retracement level, adding to the strength of my case. The risk-reward ratio in selling near 1.2310 with a s/l above 1.2340 looks very compelling.