Closed Open Orders: 2010-03-17 22:49
Those Aussie bulls are really showing their horns eh? I got the direction right but my long entry wasn’t even close to getting triggered!
The Aussie continued to trade higher, continuing its bullish run following the FOMC statement. Instead of staying range bound, price broke past the resistance and set a new yearly high! The AUDUSD has been on a steady run but I think that this might be coming to an end soon as the pair is approaching a falling trend line. I’m going to see how the markets react to the falling trend line resistance before jumping in. With the Australian economy showing signs of strength, it’ll be interesting to see who wins out: Fundamentals or Technicals?
While I was a little bummed that I didn’t opt for a break out trade from the resistance, I’ll just have to remind myself that’s better to not be in a trade than to be holding on to a losing one! Looking back, though, I would have pocketed a modest amount of pips had I played the breakout. Should’ve… would’ve… could’ve. Oh well. But it’s okay. 🙂
Trade Idea: 2010-03-16 23:40
I’m seeing a nice range play on the AUDUSD. As you can see, the pair has been consolidating between a 0.9100 and 0.9200. Presently, price action is sitting at the top of the the range. But with stochastics showing downward momentum, the pair could start heading lower. I’m looking to place a buy order at the bottom of the range at 0.9110. My target profit will be at the top of the range at 0.9200 while my stop loss will be at 0.9040.
When I looked at BabyPips.com Economic Calendar, I noticed that Australia just reported a 15.1% surge in housing starts for the last quarter of 2009. Well, that certainly beats the US housing starts which seem to have stagnated since then! Although Australia won’t be releasing any economic reports for the rest of the week, I’m hoping that this bullish sentiment would keep the AUD afloat.
On top of that, yesterday’s FOMC statement confirmed that the Fed would still keep interest rates exceptionally low for an extended period of time. So much for thinking that the Fed would jump out of their usual cautious stance. This left US dollar bulls disappointed, causing the greenback to sell off yesterday and probably until today. In fact, the recent FOMC statement would probably give traders more reason to hold on to their long AUDUSD positions considering the huge gaping difference between the US and Australian interest rates!
Again, here’s my plan:
Buy AUDUSD at 0.9110, pt at 0.9200, sl at 0.9040
My entry is a little further down, so I’m just going to have to be patient on this one. Till then, I’ll be listening to my new Paramore cd. Hopefully, my trade will be a no.1 hit like their new single, “Only Exception”! Wish me luck!
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