AUD/USD – Close Trade

Close Trade: 2008-10-31 12:52

Hello! My trade was triggered last night shortly after my post, and it looks like the trendline held as sellers jumped in and pushed the Aussie down over 100 pips. To avoid any possible event risk during the weekend, I am going to close out the trade for a small profit.

Close open short position on AUD/USD at market (.6610)

Total: +140 pips/ +0.7% gain

I may re-enter this trade at the open of next week, so stay tuned!

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Trade Idea: 2008-10-31 00:49

comdollsff

Greetings! I have a simple play in mind today for the Aussie as the bulls and bears seem to be battling it out at a falling trendline. Time to swing lower?

The chart is pretty straight forward as we can see a bit of consolidation over the past day at the falling trendline. Stochastics are in overbought territory, but trending lower, showing it may be time for a reversal.

Selling may return to AUD/USD as focus returns to global recession and further deleveraging out of higher-yielding currencies.

Later today, we do have US data coming out – most notably Personal spending and Income, Chicago PMI, and Consumer Sentiment data. I’m sure traders are expecting further weakness, so I’m not sure if the data will have much impact, unless there’s a positive surprise.

So, the sentiment, fundies, and technicals line up pretty nicely on this trade. I’m going to wait for a slightly better price before jumping in.

Short AUD/USD at .6750, stop at .6950, pt1 at .6550, pt2 at .6000

Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.

Stay tuned for updates!

  • RomanDG

    Happy Pip!
    Such a cool setup, I took this as a demo trade and my entry was missed by 2 pips AARRGHH, hope you had better luck, perhaps you data feed brought you up to the .50!

    Regards,
    Roman

  • happypip

    Hey RomanDG…yeah, I managed to get triggered on this one. So far so good! Let’s see how the rest of the day goes… :)

  • RomanDG

    Happy Pip!
    Such a cool setup, I took this as a demo trade and my entry was missed by 2 pips AARRGHH, hope you had better luck, perhaps you data feed brought you up to the .50!

    Regards,
    Roman

  • happypip

    Hey RomanDG…yeah, I managed to get triggered on this one. So far so good! Let’s see how the rest of the day goes… :)

  • Helltopia

    Small profit, 140 pips… pff :)
    No, dont you be shy – thats some great profit! Well done :)

  • leo_usb

    “My trade was triggered last night”
    Excuse my ignorance, but which system are you using that was triggered here? Cus I don´t see in the chart a “Cowabunga” or an IB . . .

  • Helltopia

    Small profit, 140 pips… pff :)
    No, dont you be shy – thats some great profit! Well done :)

  • leo_usb

    “My trade was triggered last night”
    Excuse my ignorance, but which system are you using that was triggered here? Cus I don´t see in the chart a “Cowabunga” or an IB . . .

  • cadarkitek

    Nice trade…. congrats. I trade a similar system where I use trendlines, fibonacci, candle formations and a few other requirements to enter a trade. I look forward to more of these setups as I can relate to them.

  • cadarkitek

    Nice trade…. congrats. I trade a similar system where I use trendlines, fibonacci, candle formations and a few other requirements to enter a trade. I look forward to more of these setups as I can relate to them.

  • cadarkitek

    The market retrace to test the trendline and form an evening star which triggered my entry.
    Entry : 67.83
    SL : .6910
    TP1 : .6514
    TP2 : .6040

  • happypip

    Thanks for the comments everyone! Helltopia – I’m not shy ;) By small I am referring to the percentage gain rather than the pips. A 10 pip gain with a 100k position size is the same thing as a 100 pip gain with a 10k position size. In this trade I managed a 0.7% gain on 1% risk. Kinda small, but still a profit. Leo_usb, it’s all in the analysis on why I took my trade. Basically, I am a support and resistance trader, but I also take a look at the fundies and sentiment. No mechanical trading in my blogs…that’s pipsurfer’s domain :) Cadarkitek, looks like a good call there and you’re already in profit. Good luck the rest of the way!

  • cadarkitek

    The market retrace to test the trendline and form an evening star which triggered my entry.
    Entry : 67.83
    SL : .6910
    TP1 : .6514
    TP2 : .6040

  • happypip

    Thanks for the comments everyone! Helltopia – I’m not shy ;) By small I am referring to the percentage gain rather than the pips. A 10 pip gain with a 100k position size is the same thing as a 100 pip gain with a 10k position size. In this trade I managed a 0.7% gain on 1% risk. Kinda small, but still a profit. Leo_usb, it’s all in the analysis on why I took my trade. Basically, I am a support and resistance trader, but I also take a look at the fundies and sentiment. No mechanical trading in my blogs…that’s pipsurfer’s domain :) Cadarkitek, looks like a good call there and you’re already in profit. Good luck the rest of the way!