Aha! It seems that the stars are aligned for an AUD/USD short so I jumped in at market after getting confirmation from fundamentals. A few minutes ago, China printed another decline in its HSBC flash manufacturing PMI, reflecting a deeper contraction in the industry. This could put AUD/USD back in selloff mode since a slowdown in Australia’s number one trading partner could weigh on export activity and overall growth.
As Big Pippin shared in today’s Chart Art, AUD/USD’s daily chart shows a trifecta of technical signals supporting a short bias: The pair is finding resistance at an area of interest around the .9000 major psychological level, which is close to the 38.2% Fib. Aside from that, there’s a shallow bearish divergence that’s starting to play out!
With that, I mustered the courage to short right after the release of Chinese PMI and set my stop 150 pips away, just above the 38.2% Fib. I’ll be aiming for the previous lows near .8650 but I’ll be ready to close early if market sentiment shifts. If you’re planning on joining me, make sure you check out our risk disclosure, okay?
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