Trade Update: AUD/USD Channel Retracement

I’m placing my orders to catch this potential channel bounce for AUD/USD! Here are my entry and exit points.

Long AUD/USD Trade Idea

We’ve still got the Australian jobs figures coming up so I’m giving this pair a bit more breathing room in case the actual results fall short of estimates. Analysts are hoping to see a 10.2K gain in hiring, which might be enough to keep the jobless rate unchanged at 5.8%.

AUD/USD 4-hour Forex Chart

AUD/USD 4-hour Forex Chart

I’m looking to go long on a pullback to .7575, which is slightly above the lowest Fib, .7550 minor psychological level, and channel support. I’ve got my stop set just below the swing low, which is a tad wider than the pair’s weekly ATR, and my profit target at the top of the channel.

The latest FOMC minutes revealed that policymakers are in no rush to hike interest rates, citing that they’d rather take the more prudent approach of gathering more data before making policy adjustments. This could keep a lid on the dollar’s gains for a while and at the same time encourage traders to take on more risk, which would benefit the higher-yielding Australian dollar.

Here’s my plan:

Long AUD/USD at .7575, stop loss at .7375, profit target at .7825. I’ll be risking 0.5% of my account on this trade so make sure you read our risk disclosure if you’re following me!

Cheers,

Happy time

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