EURAUD has been a very interesting pair, with aud strengthening and the euro crisis getting worst, this pair has been falling all the way. I especially love shorting this pair because it yields a good positive swap and the trend is clear: short all the way.
Last week, we saw price breach the historical low, making a new low for this pair.
We look to see price retest this former low before contemplating any shorts.
In H4, we confirm that the price level marked out coincides with a fibonacci level.
Await for price to retrace upwards before shorting. I intend to hold on to this pair till i either see a double bottom or reverse head and shoulders.