I’m having trouble catching either direction for the Aussie as price didn’t reach my limit order for one pair and didn’t get enough momentum to trigger my sell stop order for another.
Short AUD/CHF Idea
I thought that this pair was ready to head further south when it broke below the symmetrical triangle consolidation pattern on its 4-hour chart. At that time, price seemed to be pulling back to the broken support so I set a sell stop order around the spike lower in case Aussie bears return.
However, the pair kept going with its climb and even went on to break past the triangle resistance, proving that the previous downside move was a fake out. Thank goodness I opted for a momentum entry instead of jumping in at market, though!
Now that the triangle pattern seems to have been invalidated and fundamentals are turning in favor of the Australian dollar, I’ve decided to cancel my sell stop order at .7525 and move on to a different comdoll cross instead.
Long AUD/NZD Idea
I’ve been waiting to catch this steady uptrend on AUD/NZD for quite some time and it looked like a perfect pullback opportunity was presenting itself yesterday. In particular, I was eyeing a long position close to the 1.1000 major psychological level and the 61.8% retracement level which coincided with the trend line.
Price dipped close to the 1.1000 mark alright, but it only reached a low of 1.1027 while my buy limit order was waiting patiently at 1.1025. Agh!By the time I checked my charts again, I noticed that the pair was already roughly 80 pips above my buy order, which meant that it was too late to try and catch the move. In retrospect, I probably should’ve just hopped in at market when Australia’s Q2 GDP reading came in line with estimates at 0.8%, which is still significantly higher than the earlier 0.3% growth figure.
Price has yet to make new highs, though, so I’m thinking that the upcoming reports from the Land Down Under for the rest of the week could still spur enough volatility for another trend line test. But if the reports beat expectations again, I’ll probably consider going long on an upside break past the swing high around 1.1150.
See also: Q2 2017 Trading Performance Review
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