Potential Trade Setup tonight...

Hi Traders! After some much appreciated feedback from you here is a potential trade I am looking at this evening: EURAUD. Why? Look at the chart :)

SELECTION: Price has retraced to a five touch trend line from 2011 highs, the 61.8% retracement from May's high to August's low and the 200dma

TIMING: RSI divergence is showing us that the buyers are potentially exhausted allowing room for sellers to enter the market and we have a clear ring high/high test bar setup

MANAGEMENT: Given previous phase 1 cycle lengths lasted 3 months and that the beginning of phase 2 in Feb/Aug 2012 came off the 1.618 retracement this trade clearly has some room to continue its overall downtrend