Trade Closed: 2012-08-24 01:46
Ka-ching, ka-ching! AUD/USD just hit my profit target at the bottom of the range at 1.0425. Thanks to this simple day trade, I’m back in the game with a 100-pip gain on my account!
As I deduced yesterday, the anti-dollar rally faded as soon as traders carefully digested the contents of the FOMC meeting minutes. It also helped that stronger than expected U.S. flash manufacturing PMI and new home sales restored demand for the Greenback, confirming that the economic picture isn’t so bad in the U.S. these days.
With that, AUD/USD edged back to the bottom of the range during the entire U.S. session and eventually hit my target when the Asian markets opened today. Since I had a 60-pip stop, I was able to bag a 1.67-to-1 return on this day trade. Not bad, huh?
Here’s the breakdown:
P/L: +100 pips / +0.83%
After losing on my previous NZD/USD and AUD/USD trades, I’m happy to announce that I’ve recovered roughly half of those recent losses. I’m counting on y’all to help me score another winning trade next week to get back in the green for this quarter! Thanks for checking out my blog and I’ll see ya around!
Enjoy your weekend!
Trade Update: 2012-08-23 9:43
Aaaaand I’m in!
Thanks to brief rally early in the London session, AUD/USD hit my orders right at the top of the range. Yipeee!
Just when we thought that the post-FOMC rally will continue to play out over the next trading sessions, worse-than-expected reports from the euro zone and the U.K. popped up to rain on the currency bulls’ parade.
Of course, it didn’t help that some analysts are doubting the impact of the latest FOMC minutes, saying that it doesn’t reflect the recent string of better-than-expected U.S. economic reports.
Since I’m being extra careful on this day trade, I moved my stop to entry as price dipped to the middle of the range. That leaves me with a risk-free trade for the rest of the day as I keep my fingers crossed that AUD/USD will fall further to my target at 1.0425.
What do you think of my plan? As always, your thoughts would be much apprecitated!
Trade Idea: 2012-08-23 2:30
With market sentiment changing every time a new headline is printed, I’m playing it safe with a day trade!
The Aussie bulls are currently having trouble pushing AUD/USD above the 1.0525 area, which has served as a pretty solid support and resistance for the pair since late July. And get this – it’s also in line with the top weekly ATR that I pointed out in my Comdoll Trading Kit this week!
China’s disappointing HSBC manufacturing report is helping my bearish bias on the pair. A couple of hours ago the report came in at 47.8 in August, which is not only below the 50.0 reading that marks a growing industry, but is also a nine-month low for the report.
I gotta be careful though, as it’s also possible that the Aussie bulls are just taking a breather. The FOMC statement did a number on the dollar yesterday when it hinted a larger possibility of QE3 from the Fed. Some say that QE3 hopefuls only see what they want to see in the report, but hey, who am I to go against the market, right?
This time around set my short orders at 1.0525, which is almost right at the support turned resistance area on the 4-hour chart. I’m placing a 60-pip stop at 1.0585 just in case the pair encounters resistance at last week’s high (1.0574).
My initial profit target is placed 100 pips below my order (also the bottom of the range), but I’m planning to move my stop to break even once price drops by at least 50 pips.
Here’s a recap of what I’m planning to do:
Short AUD/USD at 1.0525, stop loss at 1.0585 and initial profit target placed at 1.0425 range bottom. I’ll be risking 0.5% of my account on this day trade and if you plan to tag along, make sure you read our risk disclosure first!
What do you think of my plan this time? Will we finally see some pips this week? Your two cents would be much appreciated!
Have fun and good luck trading this week, friends!
Other Popular Articles:
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.