It’s a downside break, fellas! AUD/CHF busted through the bottom of its symmetrical triangle, so I’ll try to catch the bearish momentum with a sell stop order.
Short AUD/CHF Idea
In my watchlist blog post, I mentioned that I was feeling iffy about having a strong bias in either direction for the Aussie. I thought I’d just let the market decide for me by waiting for the pair to break out from the short-term consolidation pattern.
Price fell through the triangle support so I’m placing a sell stop order just below the spike lower to catch the selloff if it gains more traction. Since the chart pattern is approximately 300 pips tall, I’m aiming for a target of the same amount with a stop half the size just past the triangle resistance.
Risk aversion might return and weigh on the higher-yielding Aussie on more signs of provocation from the U.S. or North Korea when it comes to the missile launch. Easing tensions have allowed for a quick pullback, but any stern warnings from either side could keep traders on edge.As for data, Australia’s reports actually came in the green while Switzerland’s numbers didn’t fare so well, which means that there might be some upside for this pair. Australia is still set to print its private capital expenditure data for Q2 while Swiss retail sales are due on Friday, so I think there could be room for volatility.
Still, I’m under the impression that market sentiment could remain the major driving force for forex price action in the next few days, so I’m gonna keep close tabs on the headlines and keep y’all posted if I’m about to make trade adjustments. Stay tuned!
See also: Q2 2017 Trading Performance Review
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