AUD/USD – Trade Closed

Trade Closed: 2008-12-08 14:02

My trade closed on Friday, as the Aussie was not able to sustain a move lower. My adjusted stop at breakeven (.6440) was triggered and my trade was closed.

1st Half: +100 pips
2nd Half: +00 pips
Total: +0.50% gain

I’m currently watching USD/CAD as it makes a triple top chart pattern on the daily chart. Stay tuned!

BabyPips.com AUD/USD Forums
BabyPips.com Chatroom
ReviewPips.com
MeetPips.com

Trade Update: 2008-12-05 10:26

Hello Forex Friends! The US came out with dreadful employment data today (-533K jobs lost in November), and in normal market conditions this would kill the Greenback, but we’re still in a credit crisis and risk aversion mode. Higher-yielding currencies sold off, including AUD/USD and the pair hit my first profit target. Time for adjustments.

Half of my position was closed at .6340 to lock in profit. Adjusting stop on remaining position to breakeven at .6440 to create a risk free trade. Will trail stop by 100 pips and continue to target .6240 and beyond.

So, I will trail my stop from here and keep my trade open if the market hits .6240. Depending on price action, I may or may not keep my trade open. Stay tuned and have a great weekend!

comdollsff

Trade Idea: 2008-12-03 01:18

Hello! Here’s a mid-week trade idea on AUD/USD that I’m gonna take as it looks like the pair may be set to drop once again. Check it my peoples!

The direction is mostly based on the idea we may see more risk aversion as global recession continues to hit hard. The Reserve Bank of Australia lowered it’s interest rates to 4.25% to fight off the recession, so we may see further declines in the Aussie and a continuation of the downtrend.

Technically, stochastics are in overbought territory on the hourly chart, and the trend is lower. I like a sell in the Fibonacci retracement areas and target the previous lows around .6350 and maybe beyond:

Short AUD/USD at market (.6440), stop at .6540, pt1 at .6340, pt2 at .6240

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

We do have US economic data coming up tomorrow in the form of ISM Services and ADP employment, so please be very cautious at that time. Stay tuned!

  • padlmi

    Appreciate the ideas you have. Two questions: 1. you seem to switch between one hour and four hour charts, any reason or preference? 2. Your first profit take on this trade appears to be just below a support level range of .6345 – .6350. Any inclination to go for 90 pips on the first take at say .6350 where there may be some buyers lined up and slightly larger target on the second to get the full 200 pips?

  • padlmi

    Appreciate the ideas you have. Two questions: 1. you seem to switch between one hour and four hour charts, any reason or preference? 2. Your first profit take on this trade appears to be just below a support level range of .6345 – .6350. Any inclination to go for 90 pips on the first take at say .6350 where there may be some buyers lined up and slightly larger target on the second to get the full 200 pips?

  • tuns

    Being new to Forex Trading, I tend to jump into these trade suggestions every time they pop up; and, many a time, I have got burnt out (stop touched). Today’s AUD/USD suggestion, for instance, is already sending alarm signals, as it is trending steadily away from as predicted. At this point – 1630 GMT – I am already already 51 pips on the loss side!!! Do you think it is ever going to turn around? Please HELP!
    Tuns

  • curious_user

    Hey tuns, dont worry too much, its back where it should be, but Happy Pips, I do wonder if it will break the resistance marker of 64.00, Although I’m riding this one with you all the way! just my two cents

  • tuns

    Being new to Forex Trading, I tend to jump into these trade suggestions every time they pop up; and, many a time, I have got burnt out (stop touched). Today’s AUD/USD suggestion, for instance, is already sending alarm signals, as it is trending steadily away from as predicted. At this point – 1630 GMT – I am already already 51 pips on the loss side!!! Do you think it is ever going to turn around? Please HELP!
    Tuns

  • curious_user

    Hey tuns, dont worry too much, its back where it should be, but Happy Pips, I do wonder if it will break the resistance marker of 64.00, Although I’m riding this one with you all the way! just my two cents

  • happypip

    Thanks for the comments everyone! padlmi – the hour and 4 hour time frames is usually what I look at for swing trades. Just my preference and the timeframe I look at depends usually at the environment and volatility. Second question – my take profit preferences is usually a balance between volatility, risk-to-reward ratio, and possible support and resistance levels (like round numbers). There’s no exact science to the way I trade, I base it all on what the market environment may be that day or week.

  • happypip

    tuns – Welcome to Forex trading, and I hope you are getting a lot practice on demo first! I’ve said many times before, there is no certainty in the markets, all we can do is develop an opinion or idea and make a plan for when the market goes our way or against us. This is why money management is a critical skill to successful trading…you have no idea where the market is going next at any moment. It could run your way, or stop on a dime and move against you. I’ve analyzed and made a plan for what I am going to do in the AUD/USD market. All I can do now is wait, and if conditions change I’ll make make adjustments or exit my position.

  • comfibold

    I watched the market break 6500 and begin to fall before I shorted it for an easy 80 pips. Many thanks for the trade idea Happypip!

  • happypip

    Thanks for the comments everyone! padlmi – the hour and 4 hour time frames is usually what I look at for swing trades. Just my preference and the timeframe I look at depends usually at the environment and volatility. Second question – my take profit preferences is usually a balance between volatility, risk-to-reward ratio, and possible support and resistance levels (like round numbers). There’s no exact science to the way I trade, I base it all on what the market environment may be that day or week.

  • happypip

    tuns – Welcome to Forex trading, and I hope you are getting a lot practice on demo first! I’ve said many times before, there is no certainty in the markets, all we can do is develop an opinion or idea and make a plan for when the market goes our way or against us. This is why money management is a critical skill to successful trading…you have no idea where the market is going next at any moment. It could run your way, or stop on a dime and move against you. I’ve analyzed and made a plan for what I am going to do in the AUD/USD market. All I can do now is wait, and if conditions change I’ll make make adjustments or exit my position.

  • comfibold

    I watched the market break 6500 and begin to fall before I shorted it for an easy 80 pips. Many thanks for the trade idea Happypip!

  • hany_egypt

    I like your way or plan of trading happypip .. wish you all the best and thanks for the great ideas .. Hany

  • hany_egypt

    I like your way or plan of trading happypip .. wish you all the best and thanks for the great ideas .. Hany

  • camelman

    happypip, I was with you but had to bail out (+40 pips)due to weak stomach :). Is it a good trading style to keep positions open ahead of big news release (employment friday morning)? Even if you know how bad the news might be? Thanks for the trade

  • camelman

    happypip, I was with you but had to bail out (+40 pips)due to weak stomach :). Is it a good trading style to keep positions open ahead of big news release (employment friday morning)? Even if you know how bad the news might be? Thanks for the trade

  • camelman

    sorry for doubting you happypip. I will change my name from camelman to sadpip :) good trade. thanks again

  • LoboTrader

    hapypip: You make a Wonderfull entry AGAIN, Congratulations but I still have a question, you only enter to sell ?, because maybe one day the AUD recover all the cents lost in the last 6 months ($ 0.35 AUD) and them the charts, indicators, etc, don’t do sell signals

  • camelman

    sorry for doubting you happypip. I will change my name from camelman to sadpip :) good trade. thanks again

  • LoboTrader

    hapypip: You make a Wonderfull entry AGAIN, Congratulations but I still have a question, you only enter to sell ?, because maybe one day the AUD recover all the cents lost in the last 6 months ($ 0.35 AUD) and them the charts, indicators, etc, don’t do sell signals

  • ikonroyal

    Hi,Really worth it.

  • ikonroyal

    Hi,Really worth it.