As I mentioned in my trade idea blog entry yesterday, I was looking to short either at the top of the range or on a break of the 1.0750 area. The pair broke the neckline in the latest U.S. session but I was lucky enough to catch a quick pullback today, thanks to the medium-tier inflation data released by both Australia and New Zealand.
Since I based this trade on the 4-hour chart, I’ll be placing a wide 200-pip stop above the range resistance and a target at the bottom of the range near the 1.0550 minor psychological support. This is just enough to give me a potential 1:1 return-on-risk but I’ll be ready to add another position if it tests 1.0900 or if economic data triggers a sharp selloff.
Other Popular Articles: