Hello Everyone! I am still watching the EUR/CAD trade idea I posted earlier this week and until we see what happens there I thought I'd share another trade idea in AUD/USD.

The pair has been in a short term downtrend as the US Dollar has been rallying as interest rate cuts look less and less of a possibility.

On the commodities front, we do see metals rising. Gold is on the rise as the Greenback's recent rally looks to be losing some steam.

The only question that may hurt a long position is whether or not the RBA will hike rates again in 2007? This remains to be seen as they wait for CPI data in July.

Technically, the pair is approaching the 240 WMA's and the 61% Fib retracement area. Also, stochastics are showing that the pair maybe oversold at the moment. This is a nice setup with a good looking reward-to-risk ratio.

Here we go:

Long AUD/USD at .8300, stop at .8250, pt1 at .8400, pt2 at .8450

Remember to never risk more than 1% of your account on any single trade. Please adjust your position sizes accordingly!

Good luck my friends! :)