Hello! My trade was triggered last night shortly after my post, and it looks like the trendline held as sellers jumped in and pushed the Aussie down over 100 pips. To avoid any possible event risk during the weekend, I am going to close out the trade for a small profit.
Close open short position on AUD/USD at market (.6610)
Total: +140 pips/ +0.7% gain
I may re-enter this trade at the open of next week, so stay tuned!
Trade Idea: 2008-10-31 00:49
Greetings! I have a simple play in mind today for the Aussie as the bulls and bears seem to be battling it out at a falling trendline. Time to swing lower?
The chart is pretty straightforward as we can see a bit of consolidation over the past day at the falling trendline. Stochastics are in overbought territory, but trending lower, showing it may be time for a reversal.
Selling may return to AUD/USD as focus returns to global recession and further deleveraging out of higher-yielding currencies.Later today, we do have US data coming out – most notably Personal spending and Income, Chicago PMI, and Consumer Sentiment data. I’m sure traders are expecting further weakness, so I’m not sure if the data will have much impact unless there’s a positive surprise.
So, the sentiment, fundies, and technicals line up pretty nicely on this trade. I’m going to wait for a slightly better price before jumping in.
Short AUD/USD at .6750, stop at .6950, pt1 at .6550, pt2 at .6000
Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.
Stay tuned for updates!
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