And I’m in! My short order for this AUD/USD setup got triggered on a break of the ascending trend line, but it seems like a pullback is taking place. If you’re wondering what I’m talking about, make sure you read my initial idea here.
I’m not too worried, though, as my stop is pretty far away at .7825 so I’ll have room to cut my losses in case price climbs back above the rising support area. Besides, the Australian NAB quarterly business confidence index released earlier today showed a fall from 4 to 2, indicating weaker industry conditions, so bearish Aussie pressure could be in play.
The U.S. has the Philly Fed index and initial jobless claims up for release today so I’ll be on the lookout for any significant downside surprises that might cause a sharp dollar selloff. I’ll also keep tabs on U.S. earnings reports which have been propping U.S. stock markets and the dollar higher so far this week.
Next week has a bunch of inflation-related reports from the Land Down Under, namely the quarterly CPI, PPI, and import prices figures. Weaker than expected readings could remind traders that the RBA is particularly concerned about price levels recently, as indicated in their monetary policy meeting minutes.
For now, I’ll hang tight to this short position and keep my fingers crossed for yet another dollar rally in the upcoming U.S. sessions. Anybody with me on this one?
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