Trade Closed: 2007-06-27 11:45
The Aussie continued to drop during the morning Euro trading session as risk aversion and profit taking continued on higher yielding currencies. Gold is also taking a hit as oil prices retrace, which could be another factor in the Aussie sell off. I hope everyone did well on this trade!
1st Half: +25 pips
2nd Half: +50 pips
Total: +75 pips
Trade Update: 2007-06-26 19:40
We just saw the Aussie drop within the last couple of hours…just enough to hit our short entry at .8450 and hit our first profit target at .8425. We will adjust the stop on our remaining position to breakeven and continue to target .8400.
Trade Idea: 2007-06-25 15:30
Hello! It just seems like we cannot get a fill this month as the markets narrowly miss our entry levels. This time will hopefully be different 🙂 As always, I continue to watch AUD/USD, and it looks like that it’s prime for some profit taking action!
One of the big questions in the market today are on risk appetite and the carry trade. Equities around the world have taken a small hit and we’ve seen a lack of follow through in the ComDolls even as commodities have recently rallied. Are market players ready to lighten their risk load?
While I remain bullish on the Aussie in the longer term, I think traders may take profits soon, especially ahead of this week’s news releases.
On the 4 hour chart, we see the pair ranging between .8450 and .8500 with a slight bullish trend since June 14. As the pair treads slightly higher, we see stochastics showing us a divergence as we see lower highs. This is a leading indicator that we may see a short term turn around to the downside, and that’s what we’ll play…
Short AUD/USD at .8450, stop at .8480, pt1 at .8425, pt2 at .8400
Please remember to never risk more than 1% of your account on any single trade. Adjust your position sizes accordingly.
Good luck my friends! 🙂
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