The overall trend of EUR/AUD has been up since July 2008.  However, looking at just the past six months, the pair has been in a fairly wide sideways trend, bouncing between 1.8500 and 2.1000.  In the past three months, though, we've seen the pair consolidate, forming a nice symmetrical triangle.

The triangle is reaching the point where price has to break out one way or another, and I plan to jump on board with a position when it does.  Hopefully we'll see a nice sustained move in the direction that it chooses to break, but I'm always aware of the possibility of a fakeout.

I'm going to straddle the recent activity by placing a buy order above the recent high of 2.0027 and a sell order below the recent low of 1.93724.  It's possible that neither will be hit in the next few days, especially since we're approaching the weekend, but if the pair does happen to break, I'll be ready.

• Initial Long Entry:  2.0037
• Initial Stoploss:  1.9837

• Initial Short Entry:  1.93624
• Initial Stoploss:  1.95624