EUR/AUD Retracement Play – Trade Canceled

Trade Canceled: 2013-08-06 3:55
Alas! Some things are just not meant to be. EUR/AUD didn’t pull back as low as my entry point and it seems to be in no rush to get there soon.

EUR/AUD Trade Update

Although the ECB did deliver a somewhat downbeat statement as I expected, it wasn’t enough to push EUR/AUD all the way down to 1.4620. Of course it didn’t help that the Aussie was undergoing some troubles as well since data from China has been showing signs of a slowdown.

So, for now, I think it might be better for me to remove my open orders first and move on to another trade instead. Any ideas you’d like to share?

Trade Idea: 2013-08-01 7:00

I know that losing is as much a part of trading as winning, so this week I’ll do my best to forget the pain, remember the lessons from my previous trades, and keep trading.

This week I’m seeing a possible Fib play on EUR/AUD. The Aussie has been the punching bag of the major currencies, not only because of China’s weak economic prospects, but also because of the Glenn Stevens’ hints early this week that the RBA could still cut its rates soon after all. Meanwhile, the euro has been enjoying choppy gains thanks to better-than-expected tier 2 euro zone reports peppered all over our economic calendars.

I’m looking at the 1.4600 area, which is not only a previous resistance, but is also right at the Fibonacci retracement levels. Since the price is still well away from my entry, I figured that my setup could withstand the volatility of the upcoming ECB interest rate decision. In any case, I would only enter if I see bullish candles around the time that Draghi is on the spotlight.

EUR/AUD Trade Idea

I’m planning on placing my stop loss 120 pips away, which would put my SL below the Fib levels, the bottom weekly ATR, and the major 1.4500 handle. As usual, I’ll aim for the previous highs where I’ll think about either taking profits or adjusting my stop loss.

What do you think? Can you suggest any revisions to this setup? Don’t forget to read the risk disclosure if you’re planning on trading this setup with me!

Happy time

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