Trade Update: AUD/USD Channel Breakout

So far so good on my AUD/USD long trade! In fact, price is already closing in on my profit target that I’ve decided to roll my stop up to protect my gains. Here’s a quick update.

Long AUD/USD Setup

I was able to go long on a break past the .7600 mark and short-term channel resistance, setting my sights on the top of the channel near the .7800 major psychological level. After stalling a bit around the mid-channel area of interest, the pair has resumed its climb and is around 50 pips away from my target.

AUD/USD 4-hour Forex Chart

AUD/USD 4-hour Forex Chart

There’s not much in the way of top-tier data from the U.S. today so I’m keeping my fingers crossed that the current risk-on sentiment could stay in play, bringing price all the way up to the top of the channel. I don’t want to leave it all to chance, though, so I’m moving my stop from the initial .7475 level up to .7650 to lock in 35 pips or a 0.13% gain on this position.

Data from Australia came in stronger than expected earlier today, as the trade balance printed a smaller deficit of 2.41 billion AUD compared to the previous 3.25 billion AUD shortfall. Imports were flat in July but exports rebounded 3% after falling 1% in the previous month.

Aside from that, economic data from Australia’s trade buddy China fell short of expectations but underlying figures showed a lot of promise. Exports were up 5.9% on a year-over-year basis while imports surged 10.8%, its first gain in 21 months.

On the flip side, there hasn’t been much love for the U.S. dollar these days as traders are warming up to the idea that the Fed would probably sit on its hands for the rest of the year. Hopefully my target gets hit before the tide turns so wish me luck!

Don’t forget to check out our risk disclosure when taking any of these setups. Got any comdoll trade ideas you’d like to share? Post ’em right here!

Cheers,

Happy

See also: Q2 2016 Trading Performance Review

  • Well long now, after that run down, continuation up again 🙂