Forex Trade Update: Simple AUD/USD Retracement

My, my! The Greenback’s lookin’ fly after the FOMC statement! I’ve entered a small forex position at market and I’ll continue to play this retracement setup carefully. In case you haven’t seen it yet, make sure you check out my initial AUD/USD trend trade idea right here.

Zooming closer to my potential entry area shows that the quick correction to .7350 has already played out and the pair might be on its way to test the previous lows around .7250. I was able to short at .7315 with 0.25% risk and I’m still planning to add at .7350 if price pops higher or on a break of .7250 if there’s enough downside momentum.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

Even though the FOMC statement was less hawkish than expected, most forex market watchers still seemed to hold on to the view that the Fed can hike interest rates in September. Of course this depends mostly on how economic data turns out so I’ll be keeping close tabs on the upcoming U.S. GDP release later. Analysts are expecting to see a 2.6% growth figure for Q2 2015, which would be much better compared to the previous period’s 0.2% contraction.

Earlier today, Australia printed a worse-than-expected 8.2% slide in building approvals for June versus the projected 0.8% drop. This could keep a lid on the Aussie’s gains for the rest of the day, especially if risk appetite remains weak.

What do you think of my trade plan? Got any tips on how I should play this?

Cheers,

Happy time

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