Trade Closed: 2008-05-20 00:16
Our trade closed out at the end of last week as the Aussie found support into the weekend. Unfortunately, we were short on the pair so we took a hit at the end of the day.
Total: – 50 pips/ -1% loss
Trade Update: 2008-05-15 17:07
Our short trade was triggered today just as the Europe/US trading session was winding down. The pair continued higher, but quickly found resistance at .9420 where it has failed to surpass twice today.
Trade Idea: 2008-05-14 09:43
Market sentiment has been on the side of the Greenback as of late which is clear to see in AUD/USD. It looks like the pair has broken below a rising trendline and now the argument is whether or not the US Dollar can sustain a rally on the idea that US rate cuts are over.
Inflation is the key economic factor to watch now and as prices go up, the Fed has a harder time to justify more rate cuts. Couple that sentiment with wage growth slowing in the last quarter and we can see why the Aussie has fell a couple notches since hitting .9500.
While I am bearish the US Dollar over the longer term, in the short term I think the pair has topped out when it hit .9500, and we may see a pull back towards .9000. On the chart, we can see the trendline break and if the pair retraces back up to the area highlighted, around .9400, then we may have a nice opportunity to jump in short and ride the bullish USD sentiment.
Stay tuned and good luck my friends!
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