Pick of the Day: AUD/USD
Today we have a daily chart of the AUDUSD:
As you can see the pair is in a downward channel. The top of a channel is a strong resistance point, and with the 200 SMA there as well it looks like the pair is having trouble pushing upwards and may turn downwards.
To get ready for a short trade let's take a look at the hourly chart:
As you can see, the pair is currently under the days' pivot point indicating it's time to go short.
I'm going to wait for the pair to close below the first support area to go short. This would clear us of the 1hr 200 SMA which can be a strong support area.
Again, with these trades I go for an intial 10 - 20 pips, but if you're brave enough, go for the S2 line @ .7459; a good 39 pips.
We'll place our stop above the channel and simple moving averages.
Remember, no matter how many pips you risk, make sure it doesn't add up to more than 3% - 5% of your account.
Always remember money management!
Now, CPI is coming out in AUS tomorrow at 7:30 pm EST. We recommend not trading around news reports, so 30 minutes before hand we will exit our trade or remove our entry order if it hasn't hit. Well, that's it for now. Hopefully the first one is a good one! Good luck and good trading!
