Daily Chart: EUR/AUD has crossed below a weekly trend line set back from February 2017 and forming a bearish 5 wave wedge (ABCDE).

To complete the wedge pattern, the EUR/AUD final wave E is now in play for upside before the next fall.
 The open today MUST hold the bullish engulfing 1-hour range for confirmation to enter.

Key Points:

• Price holding above the 50 EMA
• Price to reclaim 200 EMA
• Bullish Engulfing Pattern
• Price holding Fibonacci 50% retracement level
• Price zone of Fibonacci Extension 100%-123.6% (ABC)
• RSI could break trend and range simultaneously for momentum

Key Levels:
Support – 1.6240, 1.62104
Resistance – 200 EMA, 1.6300, 1.63282, 1.6400, 1.6500
Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 1.62400
Supporting Entry – 1.62500
Candle Reversals for entry

• Bullish Engulfing

The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks below 1.6200 – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 1.62400 – Target 1 1.63282 = 2.3x Reward to Risk
Optimal Entry 1.62400 – Target 2 1.6400 = 4x Reward to Risk
Optimal Entry 1.62400 – Target 3 1.6500 = 6.5x Reward to Risk
 
Supporting Entry 1.62500 – Target 1 1.63282 = 1.5 Reward to Risk
Supporting Entry 1.62500 – Target 2 1.6400 = 3x Reward to Risk
Supporting Entry 1.62500 – Target 2 1.6500 = 5x Reward to Risk