Trade Closed: 2007-05-24 09:25
Good morning! Well, our trade stopped out with a profit as AUD/USD failed to find support and continue its rally. On the way down we had another order triggered to go long to add more potential gain with a small amount of risk, but our entire position was closed as it moved down past our trailing stop at .8230. We still made a nifty +30 pips, so congrats to those who profited!
1st half: +40 pips
2nd half: -10 pips
Trade Adjustment: 2007-05-23 07:55
Our position is working out quite nicely as the Greenback sells off this morning. I’d like to make a few quick trade adjustments to lock in profits and add more to our trade on a retracement:
Adjust stop to .8230, change pt from .8260 to .8300.
Trade Update: 2007-05-22 19:44
Greetings my friends! Just wanted to post a quick update that our half position was triggered today to go long AUD/USD at .8190. With the lack of any significant data to the Aussie or Greenback until Thursday, I think we will see technicals support this pair and hopefully the positive interest rate differential will attract more buying at these levels. Stay tuned for more updates!
Trade Idea: 2007-05-21 16:19
Good afternoon my friends! The Aussie has been on an uptrend against the Greenback on the demand of raw materials prices (mostly rising gold prices), the positive interest rate differential, and the possibility of more rate hikes in Australia and the rate cuts in the US. Now, we are seeing a downtrend as the possibility of Fed rate cuts are being price out of the market, but how long will that last?
I think we may see the uptrend resume soon as we see oil rising once again. Traders will look to gold as an inflation hedge, and as we all know from the Comdolls Lesson that gold and the Aussie Dollar have a high correlation to each other.
For our entry, I think we may see the pair drop back down to the support area as the Dollar attempts to rally a bit more. For now we will enter half our normal position size to see how the market plays the pair out ahead of significant US data on Thursday.