My trade closed on Friday, as the Aussie was not able to sustain a move lower. My adjusted stop at breakeven (.6440) was triggered and my trade was closed.
1st Half: +100 pips
2nd Half: +00 pips
Total: +0.50% gain
I’m currently watching USD/CAD as it makes a triple top chart pattern on the daily chart. Stay tuned!
Trade Update: 2008-12-05 10:26
Hello Forex Friends! The US came out with dreadful employment data today (-533K jobs lost in November), and in normal market conditions this would kill the Greenback, but we’re still in a credit crisis and risk aversion mode. Higher-yielding currencies sold off, including AUD/USD and the pair hit my first profit target. Time for adjustments.
Half of my position was closed at .6340 to lock in profit. Adjusting stop on remaining position to breakeven at .6440 to create a risk-free trade. Will trail stop by 100 pips and continue to target .6240 and beyond.
So, I will trail my stop from here and keep my trade open if the market hits .6240. Depending on price action, I may or may not keep my trade open. Stay tuned and have a great weekend!
Trade Idea: 2008-12-03 01:18
Hello! Here’s a mid-week trade idea on AUD/USD that I’m gonna take as it looks like the pair may be set to drop once again. Check it, my peoples!The direction is mostly based on the idea we may see more risk aversion as the global recession continues to hit hard. The Reserve Bank of Australia lowered its interest rates to 4.25% to fight off the recession, so we may see further declines in the Aussie and a continuation of the downtrend.
Technically, stochastics are in overbought territory on the hourly chart, and the trend is lower. I like a sell in the Fibonacci retracement areas and target the previous lows around .6350 and maybe beyond:
Short AUD/USD at market (.6440), stop at .6540, pt1 at .6340, pt2 at .6240
Remember to never risk more than 1% of any trading account on any single trade. Adjust position sizes accordingly.
We do have US economic data coming up tomorrow in the form of ISM Services and ADP employment, so please be very cautious at that time. Stay tuned!
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