Trade Update: 2013-06-18 10:05
Last week I saw that GBP/AUD had failed to reach my original orders at 1.6250 before it bounced from the 200 SMA. Because I didn’t want to miss on a potentially good move, I entered at market (1.6383) with my stop loss at 1.6211.
In hindsight I probably should have waited for price to hit my orders. I could have also waited for another retest of the 200 SMA. In any case, price eventually dipped to 1.6250 before shooting higher. Good thing that I had a pretty accommodative stop loss size!
Now, thanks to the RBA minutes’ bearish tone, GBP/AUD popped higher and reached my profit target for a 1:1 trade. Not bad for a trade that’s mostly based on a new indicator, I think.
Fingers crossed for another winning trade this week!
Trade Idea: 2013-06-13 07:25
Desperate times call for creative measures!
After getting burned by my AUD/USD, AUD/JPY, and CAD/JPY trades, I’ve decided to look for trades on pairs that I don’t normally look at! Not only that, but I also added the 200 SMA on my trading tools! Without further ado, here are my reasons for buying GBP/AUD:
- Price could possibly encounter support at:
- Bottom weekly ATR (1.6292)
- 1.6250 minor psychological area
- 38.2% Fib retracement on the 1-hour chart
- 200 SMA (pink line) that has been intact since April 2013
- Previous resistance
- Stochastic looks nearly oversold and ready to go up
- Australia’s employment numbers might have surprised to the upside, but a closer look reveals that the increase in jobs is due to part-time employment eclipsing the decline in full-time employment. Westpac Institutional Bank also revealed that the jobless rate’s decline from 5.6% to 5.5% is mostly due to the fall in participation rate rather than creation of jobs.
- Meanwhile, the U.K.’s claimant counts unexpectedly fell by 8,600, its seventh consecutive decline and its lowest level in two years. Booyah!
Here’s my plan:
Buy at 1.6260 with my stop loss 170 pips away (that’s a ½ WATR move). I’ll place my profit target for a 1:1 trade although I’ll keep close watch on the pair to move my stop loss to BE as soon as I can.
As usual, I’ll risk 0.5% of my account and recommend you to read the risk disclosure if you’re planning on taking this trade with me.
I’m pretty excited about this one! What do you think?
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