Bahh, looks like those gains were too good to last! Days after the U.S. printed a strong jobs report and pushed AUD/USD to .7600, Australia followed up with its own impressive employment release and triggered a strong bounce. Thank goodness I was quick on my feet and able to close my trade early.
If you’re wondering what my forex setup is all about, make sure you read my initial AUD/USD short trade idea first.
As I’ve mentioned in my latest trade update, I was hoping to hold on to this swing setup much longer so I didn’t book any profits at the .7600 major support area yet. I was actually planning on adding to my position on a breakdown!
Unfortunately, this didn’t work out in my favor as the long-term floor still held and price eventually climbed close to my entry area. With that, I just thought of making my trade adjustments after the release of the Australian jobs report. As it turns out, the economy added 42K jobs in May, much higher than the projected 12.1K gain and enough to bring the jobless rate down from 6.2% to 6.0%.
With that, AUD/USD got a fresh boost and is now nearing the neckline of the double bottom pattern that Big Pippin pointed out. I’m closing my short position for now but I’m maintaining a bearish bias on this pair, so let’s see where the upcoming U.S. retail sales release takes this.
On a more upbeat note, props to my dear readers who suggested that I book half my profits at .7600 and just trail my stop on the remaining short position. I just wish I hadn’t read those comments too late, but thanks for the feedback! I’ll keep those strategies in mind the next time I find myself in a similar situation.
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