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My AUD/USD short is still paying off for me, but with the market testing major support & with Aussie data coming up, I thought it was time to lock in more profits.

Trade Idea: Strong Resistance on AUD/USD?

AUD/USD Daily Forex Chart
AUD/USD Daily Forex Chart

After rolling down my stop to reduce risk and lock in a small profit last week, AUD/USD managed to fall even lower, most likely on the latest round of broad risk-aversion sentiment as geopolitical tensions seem to be rising. So, everything is looking pretty good at the moment, but now we’re at a technical level that could possibly draw in buyers.

Looking at the Daily chart above of AUD/USD, we can see the market is now trading around the .7500 handle (a major psychological level) that could bring in technical traders to buy. And whether or not that happens could depend on the next fast approaching catalyst: Australian jobs data. Forex Gump did a nice job with the latest Trading Guide for the Aussie jobs number, and based on his analysis of the most recent survey data, I think the odds are low that we’ll get a big upside surprise to the data. But of course, anything could happen so I’ll go ahead and roll down my stop once again, this time to .7590 to lock in a 110 pips (+0.32%) gain on 0.50% original risk. 

If I’m still in the position after the Aussie jobs data and depending on what the data gives me, I will add to my position to increase my potential profit, as well as roll down my stop further to keep my risk low.

Nothing to do now but wait for the upcoming Australian employment data; until then trade safe and stay tuned for fresh updates and adjustments!

Risk Disclosure
Pipcrawler’s Q4 2016 Blog Trading Performance

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.