Forex Trade Review: AUD/USD Retracement to .8700

A few days back, I took a simple retracement play on AUD/USD, as the pair pulled up to a broken support zone. Here’s how it turned out:

DING! DING! DING! DING! DING! We’ve got a winner!

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

Although I must admit that I shorted a wee bit early at the .8700 mark and could’ve waited for a higher retracement to .8750, I’m still happy with how the trade turned out. Resistance at the Fibs and broken support zone held like a boss, eventually pushing the pair down to its previous lows.

I did worry about that PBoC rate cut though, as it provided some reassurance that Chinese demand for Australia’s commodity exports could stay afloat. However, the rally quickly fizzled as forex traders took this as a sign that officials are finally admitting that China is in for a slowdown.

With that, I managed to score some decent pips on this short trade. Here’s what I have:

P/L: +150 pips / +1.50%

I still have a couple of comdoll cross trades open (short GBP/NZD and short EUR/CAD) that don’t appear to be going my way at the moment. Care to share your thoughts on these?

Cheers,

Happy time

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  • ForExchange

    Hi Happy Pip,

    many congrats on your winner! I guess we have to wait on the other trades to see how it develops. At least for me fundamental reasons are still there for the valid trades and technically it is also not yet invalidated.

    Good luck,
    FE

    • Thanks for the positive feedback! See you!

  • Hey there! How are your trades going so far?