EURAUD - A straight melt or a retrace?

PAIR IN FOCUS: EURAUD
ACTION: SHORT
HORIZON: SHORT TO MEDIUM TERM

On a higher time frame, it is more evident to see that price has broken down from a long-term rising wedge pattern. There are 2 routes for this current situation: Route 1 being a direct melt to TP level, or Route 2, where price retraces and retests the lower bound of the rising wedge pattern before falling. Route 2 will be more ideal because it provides a better R:R for this trade.
This pair will be affected by any trade war progress, and a positive one will boost AUD, which will aid in the bearish bias for this pair.

Do take note that the SL is set for Route 2 set-up. Set your own SL for Route 1 (should be a fairly straight forward trade if price melts directly down).

TP level and Stop loss (please read above) have been indicated. Remember to manage your risk!

Feel free to discuss and comment, Cheers!

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