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.
I’d like to hold on to the short position and see if .9400 – .9420 continues to attract sellers. If we are still in our position tomorrow, I may close it down ahead of US data. Stay tuned!
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.
Short AUD/USD at .9390, stop at .9440, pt1 at .9340, pt2 at .9200
Remember to never risk more than 1% of your account on any single trade. Please adjust position sizing accordingly.
Stay tuned and good luck my friends!
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