EUR/AUD Shows Long-Term Ascending Channel

EUR/AUD is currently showing a very interesting pattern with multiple confirmations — a long-term ascending channel with a starting point on May 1 this year. It follows a bearish trend wave beginning in December 2014. The resulting continuation pattern offers a shorting opportunity in case of a bearish breakout.
The dashed yellow lines on the image below mark the channel’s borders (note the number of price hits). The cyan line, placed at 10% of the channel’s height below the lower border, shows my entry point for a short position. The green line is located at 100% of the channel’s height below the pattern’s border and presents an inclining take-profit level for that position. I will set my stop-loss to the high of the breakout bar or to the high of the previous bar in case the major part of the breakout bar appears outside of the pattern. I will not trade a bullish breakout of this ascending channel. If you want to see a full-size screenshot of this setup, please click on the image:

The channel was detected using the Channel Pattern Detector indicator. The chart was built using the ChannelPattern script. You can download my MetaTrader 4 chart template for this EUR/AUD pattern. It can be traded using my free Chart Pattern Helper EA.
Update 2015-08-24 7:05 GMT: The trade setup has been cancelled as the price has broken far above the channel’s upper border now:


If you have any questions or comments regarding this ascending channel on EUR/AUD chart, please feel free to submit them via the form below.