Trade Canceled: AUD/USD Channel Break and Pullback

So much for that retest! Dollar bulls were so eager to charge that AUD/USD barely made it to the nearest Fib before resuming its dive. I guess it’s time to cancel my orders on this one.

AUD/USD Short Trade Idea

I was hoping to catch a pullback on this AUD/USD short-term downtrend after price broke below a longer-term channel on its 4-hour time frame. I had the Fibs up and noticed an area of interest around the .7600 handle so I planned on shorting around that entry area.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

However, dollar domination came back into play when U.S. data came in much stronger than expected in the previous New York session. The CB consumer confidence index, which is considered a leading indicator of spending, jumped from 96.7 to 101.1 and spurred another wave higher for the Greenback.

With that, AUD/USD already broke below the swing low, invalidating the Fib setup that I’m watching. Time to move on to another comdoll setup then! Got any ideas you’d like to share?

Cheers,

Happy time

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