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The major resistance area on AUD/USD held as hoped & now giving me some good pips. With NFP ahead it’s time to reduce risk & max out my potential gain.

Trade Idea: Strong Resistance on AUD/USD?

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

It’s been a couple of weeks since entering short AUD/USD at .7700, and thanks to surprisingly dovish rhetoric from this week’s Reserve Bank of Australia monetary policy meeting, the market made a fresh move lower to give my short position extra pips. This is has give me an opportunity to reduce risk and lock in a small profit ahead of the upcoming Non-Farm Payrolls data this Friday. Not that I think we’re gonna get a bad jobs number, but with unemployment claims ticking higher each week in March versus a positive read from the March ISM employment data, it could probably go either way.  So, I decided to  roll down my stop from .7870 to .7655 to lock in a 45 pip (+0.125%) gain.

If I’m still in the position next week and we get fresh momentum to the downside, I will be watching that major psychology level of interest (.7500) to see if it will break or hold.  If it does break, 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 U.S. 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.