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Luckily, my AUD/USD position survived a spike higher not too long after I entered as global growth fears took over to push forex traders back into sell mode. Time to lock in profits!

Short AUD/USD

Original Trade Idea: Forex Trade Idea: AUD/USD Short

AUD/USD 4-Hour Forex Chart
AUD/USD 4-Hour Forex Chart

After the initial reaction of the FOMC meeting, it looked like risk-on was back on when AUD/USD made another run up to .7275. But on the second test, sellers turned back the bulls in the blink of an eye with a return of focus to the global growth fears that may have contributed to the FOMC holding off on a rate hike in the first place. Since then it’s been a near straight shot down and the market is now testing the major psychological handle of .7000.

With the stochastic showing potentially oversold conditions at a major psychological level, I’ve decided to lock in a small profit to create a near risk-free trade. I have adjusted my stop to .7100 to lock in 70 pips (+0.175%). 

The rest of the week looks like volatility is likely to stay up with mid-to-top tier U.S. events coming up, and with the data looking to come in mixed in terms of positive or negative for the Greenback, I think it was a good idea to roll down the stop rather than close out the trade all together.  Of course, I won’t know until the end of the week, so stay tuned for updates then!

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.