Trade Closed: 2007-09-13 09:20
Our trade closed yesterday as the Dollar selloff continued and the Aussie rallied on a stronger demand for gold as a safe haven.
This stopped out our trade at .8370 for a -80 pips loss.
We are potentially seeing a longer term return to Dollar weakness as the pair may be changing trends as it breaks through the 240 MA’s. Stay tuned as I look enter long this pair on a deeper retracement and if US data continues to show weakness.
Trade Idea: 2007-09-11 09:20
Good morning! Today, we have a nice chart setup on AUD/USD and we may potentially see the pair resume a decline.
On the chart, we can see the 240 MA’s trending lower, and now price action is back within average prices over the past month. Also, we can see that AUD/USD has touched .8300 before and failing to make a move higher. Stochastics are almost in overbought territory, so we will wait for the pair to trade a little bit higher before taking our short position.
One more thing to note is if you take a look at the daily chart, the pair is trading at the 61% Fibonacci level, a significant resistance level, on the swing move from about .8668 to about .7668, and stochastics are already in overbought levels and turning lower.
So, a lot of arguments for a reversal and without any major data this week, we may see the Dollar rally as the Dollar sell off may be overdone.
Short AUD/USD at .8290, stop at .8370, pt1 at .8200, pt2 .8150
Remember to never risk more than 1% of your account on any single trade. Please adjust position sizes accordingly.
Good luck my friends!