Trade Closed: 2008-08 11:04
It looks like we’re seeing the biggest day for the US Dollar in almost seven years. This is of course is affecting all currencies and commodities and no support/resistance level was going to stop this juggernaut as the “short dollar” unwind continues.
Our trade was stopped out.
Total: -100 pips/ -1.0% loss
This move is a rare occurrence and with it being the end of the week, I have decided to sit the rest of the day out. Have a great weekend!
Trade Idea: 2008-08-07 15:48
Greetings Forex fanatics! The Greenback has had all the momentum in the world on it’s side as of late, but will the slide in AUD/USD run out of steam a possibly swing back higher?
Recent data may support a swing higher as Australia added more jobs than expected, while the US continues a trend of job losses. Of course, the recent slide in the Aussie has been due to commodities falling and speculation in rate cuts from the RBA. If either commodities or interest rate sentiment do not change soon, it looks like the pair may hold at the psychologically significant level of .9000.
I’m going first put a counter trend trade on in the thought that it may be oversold for now. Since it is counter trade, I will keep a tight stop of about 100 pips, and go for about 300 pips max. If the pair breaks lower, I will have a short order ready to go.
Long AUD/USD at .8990, stop at .8890, pt1 at .9090, pt2 at .9290
Remember never risk more than 1% of your account. Adjust position sizes accordingly.
Because of the larger timeframe and the possibility of consolidation at .9000, this trade may take a while to play out. Stay tuned for updates and adjustments.