Here’s my first trade idea for the year! What do you think of this straddle setup for AUD/USD before the NFP release?
On its daily time frame, it’s pretty clear that this pair is currently testing a major support area around .8850 to .8900. It bounced from this area a couple of times in the past few months but it seems ready to make a break for it this time, as a bearish flag has formed right there!
A few fundamental factors, such as weak data from China and jawboning from the RBA, support a downside break but I’m still wary about the upcoming U.S. NFP release. After all, analysts are expecting slightly weaker jobs growth for December. If the actual figure comes in way below expectations, then we might see a quick dollar selloff.
With that, I’m considering setting buy orders above the consolidation pattern and sell orders below the previous lows. What do you guys think?
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