After a sweet downside move in AUD/USD over the past week, I decided to close out my trade with the techs telling me there may not be much legs left for the bears. Here’s a quick review.
Rising Low Break on AUD/USD
AUD/USD bears were able to push the pair even further during the Asia and London session today, but it looks like that previous swing low and major psychological level of .7800 drew in the bulls and/or some profit taking. This makes a little bit of sense as forex traders were seeing the final U.S. GDP numbers coming in, and after a strong intraweek move (1 weekly ATR from week open), odds are likely the run is done as indicated with the stochastic showing oversold conditions.
Given the price action and technical arguments against further moves lower, I decided it was best to just close my AUD/USD short to take some profits ahead of the weekend
Total: +98 pips/+0.27% gain on 0.50% risk
In hindsight, probably the only thing I could have done different was to better time my entry, but in recent trade ideas, I’ve missed a few sweet moves because I was a little too conservative with my entry. So, I did give up a few pips, but overall it worked out nicely for a week long trade.
That just leaves me with long orders on GBP/NZD, and with the market far away from my desired entry at 1.8400, I’ll close these orders ahead of the weekend and reassess my entry. Stay tuned for a possible entry adjustment and fresh ideas next week, and until then, good luck and good trading!
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