Well, that was quick! Soon after I decided to enter this trade at market, the pair edged back down to its previous lows. Here’s what happened:
Support at the .8050 minor psychological level and previous lows appears to have held prior to the release of the FOMC minutes so I opted to exit early. I knew I couldn’t be able to watch the forex charts during the event itself and I didn’t want to risk it, knowing that a disappointing report could lead to a sharp dollar selloff.
I’m pretty happy with how I managed this trade though, as I managed to lock in 80 pips on this trade or roughly a 0.8% gain on my account. As Big Pippin mentioned in today’s Chart Art, AUD/USD appears to be making a reversal pattern and I don’t want to leave this short trade open in case the uptrend pushes through.
Got any trade ideas you’d like to share with me?
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