AUD/USD Range: Day Trade Idea – Profit Target Hit!

Trade Closed: 2012-08-24 01:46
Ka-ching, ka-ching! AUD/USD just hit my profit target at the bottom of the range at 1.0425. Thanks to this simple day trade, I’m back in the game with a 100-pip gain on my account!

AUD/USD Range Trade Closed

As I deduced yesterday, the anti-dollar rally faded as soon as traders carefully digested the contents of the FOMC meeting minutes. It also helped that stronger than expected U.S. flash manufacturing PMI and new home sales restored demand for the Greenback, confirming that the economic picture isn’t so bad in the U.S. these days.

With that, AUD/USD edged back to the bottom of the range during the entire U.S. session and eventually hit my target when the Asian markets opened today. Since I had a 60-pip stop, I was able to bag a 1.67-to-1 return on this day trade. Not bad, huh?

Here’s the breakdown:

P/L: +100 pips / +0.83%

After losing on my previous NZD/USD and AUD/USD trades, I’m happy to announce that I’ve recovered roughly half of those recent losses. I’m counting on y’all to help me score another winning trade next week to get back in the green for this quarter! Thanks for checking out my blog and I’ll see ya around!

Enjoy your weekend!

Trade Update: 2012-08-23 9:43

Aaaaand I’m in!

Thanks to brief rally early in the London session, AUD/USD hit my orders right at the top of the range. Yipeee!

Just when we thought that the post-FOMC rally will continue to play out over the next trading sessions, worse-than-expected reports from the euro zone and the U.K. popped up to rain on the currency bulls’ parade.

Of course, it didn’t help that some analysts are doubting the impact of the latest FOMC minutes, saying that it doesn’t reflect the recent string of better-than-expected U.S. economic reports.

AUD/USD Range Trade Update

Since I’m being extra careful on this day trade, I moved my stop to entry as price dipped to the middle of the range. That leaves me with a risk-free trade for the rest of the day as I keep my fingers crossed that AUD/USD will fall further to my target at 1.0425.

What do you think of my plan? As always, your thoughts would be much apprecitated!

Trade Idea: 2012-08-23 2:30

With market sentiment changing every time a new headline is printed, I’m playing it safe with a day trade!

The Aussie bulls are currently having trouble pushing AUD/USD above the 1.0525 area, which has served as a pretty solid support and resistance for the pair since late July. And get this – it’s also in line with the top weekly ATR that I pointed out in my Comdoll Trading Kit this week!

China’s disappointing HSBC manufacturing report is helping my bearish bias on the pair. A couple of hours ago the report came in at 47.8 in August, which is not only below the 50.0 reading that marks a growing industry, but is also a nine-month low for the report.

I gotta be careful though, as it’s also possible that the Aussie bulls are just taking a breather. The FOMC statement did a number on the dollar yesterday when it hinted a larger possibility of QE3 from the Fed. Some say that QE3 hopefuls only see what they want to see in the report, but hey, who am I to go against the market, right?

AUD/USD Range Day Trade

This time around set my short orders at 1.0525, which is almost right at the support turned resistance area on the 4-hour chart. I’m placing a 60-pip stop at 1.0585 just in case the pair encounters resistance at last week’s high (1.0574).

My initial profit target is placed 100 pips below my order (also the bottom of the range), but I’m planning to move my stop to break even once price drops by at least 50 pips.

Here’s a recap of what I’m planning to do:

Short AUD/USD at 1.0525, stop loss at 1.0585 and initial profit target placed at 1.0425 range bottom. I’ll be risking 0.5% of my account on this day trade and if you plan to tag along, make sure you read our risk disclosure first!

What do you think of my plan this time? Will we finally see some pips this week? Your two cents would be much appreciated!

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Have fun and good luck trading this week, friends!

Happy time

Other Popular Articles:

NZD/USD trade What is the STA strategy? Q2 2012 in Review Comdoll Trading Kit (August 13-17, 2012)

  • MCharlesF

    I think there will be strength to pull the currency down but not enough to your initial profit zone. I hope you keep on top of the trade as i suspect you’ll need to take your profit prior to Australian market opening!

    • happypip

      Phew! Good thing AUD/USD hit my profit target just as Australian markets opened.

  • serhan silkin

    Congratulation…

  • Granticus_Maximus

    Nice one Happy Pip! Looks like it’s keeping on heading it’s way down for now too! Since your entry it looks like the bears are pulling it down further below your tp! I hope you had multiple entries! :D

    If you do, what are your next targets?

    • happypip

      Dang, I only had one target since it was just a day trade. Were you able to play this one?

      • Granticus_Maximus

        Unfortunately no… :( …since the AUD/USD was ranging for so long between 1.5000-1.6000 I decided to stay away from it to manage risk. The EUR and GBP vs the USD and JPY have been my main focus :)
        In any case, it’s good to see a winner for you! Keep us updated with your trade ideas and maybe I’ll be more open to AUD trades and join you next time now that it’s out of its range :)

  • Ozzymau

    Congrats, nice setup. I just joined BabyPips. Seems like a lot of good gestures from members, lets all hang together and help each other so we as the little people in this market can take some money from the Big Fish in the currency pond.
    Happy Fishing

    • happypip

      Nice meeting you here! Stick around! :)

  • masTidar

    Today, mission accomplished
    g’Luck for you. I’m feel happy with this trading plan :)

    • happypip

      Thanks for the kind words and for checking out my blog. See ya around!

  • Jonas

    I will stay of this one. if you watch the USDollar Index you would see
    that The USD is in a week zone right now, and it doesn’t look strong
    enough to pull the Aussie Down. Good Luck!

    • happypip

      Thanks for the heads up and for checking out my blog!

  • Mostwantedpip

    Go get them!! Girl after few unlucky trades you are back in the game!!!! Indeed happy pip..

    • happypip

      Thank you! Hopefully I can follow this up with another win this week :)

  • DewaForex

    Congratulation…

    • happypip

      Thanks! I’ll post my trade update in a few :)