I currently have a short-term play on AUD/USD and a longer-term forex setup on GBP/NZD. Before reading my trade updates, make sure you check out my trade ideas first:
After waiting for confirmation on this AUD/USD short setup, I spotted a shallow bearish divergence and decided to enter once price showed downside momentum. I was able to get in around the .8700 area, with a stop at the .8850 mark and a target at .8550.
I do wish I was able to enter at a much better price though as I realized that the broken support area was more of a rising trend line that coincided with the 61.8% Fib! I’ll be keeping this one open for now since we’ve seen bleak reports from China and renewed dollar demand after strong U.S. retail sales figures were released last week.
As for this one, I’m a bit bummed out that I missed my pullback entry after price broke below the neckline and 2.0000 major psychological mark. I was able to short at market at the 1.9700 handle with a really wide stop at 2.0200 and a smaller position. Since this is a long-term play based on the daily and 4-hour time frames, I still plan to add on a retracement or another breakdown while aiming for the 1.9000 levels.
Forex Gump gave four convincing reasons why the pound could keep dropping and I share this bias, along with the bullish outlook for the Kiwi. After all, Finance Minister Bill English did say that the New Zealand dollar is already trading at sustainable levels, lowering the odds of RBNZ intervention.
Do you think I could win both trades this time? As always, I look forward to your feedback!
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