Trade Update: 2013-07-02 08:29
My, my! I can’t believe I missed my entry on this AUD/USD short setup by just a few pips. I was planning on shorting at .9350 but the pair reached a high of only .9346 before plummeting below the .9200 mark. Had I caught the move, I would’ve scored 150 pips or a 1% gain!
As you can see from the chart, the pair did find resistance around the area I pointed out as the trend was really strong on this pair. Too bad I wasn’t able to catch it!
As it turns out, U.S. data came in mostly better than expected last week, with an increase in personal spending and a strong pending home sales figure. These were enough to push AUD/USD to new yearly lows, just below .9200. Do you think I should’ve simply just jumped in at market prior to the release of U.S. reports? Or do you think I made the right decision by sticking to my original trade orders?
Any feedback would be very much appreciated! I’ll be publishing my Q2 Trade Performance pretty soon and I’d love to hear your thoughts on that as well!
Trade Idea: 2013-06-27 02:49
With market themes shifting faster than we can say “North West,” I think it’s only prudent not to hold on to open positions for long.
This week I spotted a potential short AUD/USD setup. The pair is now lollygagging at the .9300 major psychological handle, which is almost near the area of former support, 50% Fib retracement, AND a possible 200 SMA support. Time to go shopping for pips? I think so!
Fundamentally I’m counting on a continuation of the comdolls’ losses. Nothing much has changed for the Aussie’s landscape except for a bit of USD weakness following the release of disappointing U.S. GDP report. The news also pushed gold prices higher, which propped up AUD/USD for a while.
Still, I tweeted yesterday that Australia’s new PM Rudd is capable of releasing statements like the Chinese resource boom being over. If he continues to release bearish statements like that, it won’t be long before we find the Aussie at the bottom of the dog pile again!
Here’s the plan:
Short at .9350 with my stop loss at .9425 and initial profit target at .9200. That should give me a risk ratio of about 2:1.
I’m only planning on holding on to my orders or open positions until the end of the week, but feel free to suggest any strategy that might improve my trading plan!
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