Anyone shorting AUD/USD

I went short this morning though I assume that the downward trend will only be momentarily I see it as a correction. Anyone ? I’m looking to pocket 10-20pips from this anticipated downward move. Fairly new trader if I’m wrong please correct me :slight_smile:

Not sure if anyone was shorting on aud usd on this downward correction move I did and I’ve won the trade just for an update now I’m looking to buy if the price hits and breaks out of next resistance it’s been in an upward move against usd for a while now.

What do you guys think ? I can’t really give out the specific price action zones right now as I’m away from my laptop. Cheers ! Happy pipping :slight_smile:

AUDUSD continues to hold above price support at .9369, keeping the immediate risk higher for a challenge of the 2014 high at .9463 initially, which we would expect to cap at first. A break higher in due course should see strength extend towards .9545 next, and potentially .9584 – the 38.2% retracement of the entire 2011/2014 downtrend. Immediate support shows at .9409, followed by .9369, which we look to ideally hold. Only beneath .9322/18 can negate the immediate bullish bias.
Strategy: Long, stop below .9290, for .9460/65. Reinstate above, for .9580.

What is the correct process for buying short? Thanks!

Technically you can’t “buy short”.
Whenever you’re shorting an instrument, you’re selling (or borrowing) one currency against the other (and the opposite is true for long positions- buying one against the other).
When you close your short position, you’re “covering” or, submitting a buy order to close.
Short positions are closed with a buy order, buy positions are closed with a sell order.
In terms of the correct process- that’s going to depend on your specific strategy.

The Aussie has been in a 200p range since late MAR of this year.
Traders are looking to sell around 9425 and buy around 9225.
You stick with that strategy until the range is broken, and a trend is established.
However, on smaller intraday time frames there may be other opportunities to buy/sell.

Thank you. I am still trying to develop a trading strategy. I have yet to garner enough courage to make my first trade, but look forward to the day that I do.

You’re welcome.
Just stick with it, and completely dedicate yourself to the educational process.
Most will fail because they develop a system which “works” for a few weeks, then hits a string of losses and the individual trader abandons the strategy because they think it’s broken.
No one books 100% profit 100% of the time.

That makes sense. Where can I find good, detailed information on selling short? I really want to understand this aspect of FOREX trading. Also, since I, like you are U.S. based, who would you reccomend as a good, reliable US Forex broker, or where can I find good research data on available US Forex Brokers Thanks!

Search the topic out on youtube or the internet. What specifically are you looking for?
It’s really not much more complicated then shorting the market if you think price is going to go down…

I recommend FXCM US.

Thank you for the Broker Reccomendation, and I will search out on youtube how to sell short.

Hi Silversurfer,

I made this post in another thread about short selling that you may find useful: 301 Moved Permanently

If you ever have questions about FXCM, please feel free to ask me in the Broker Aid Station.

Welcome to the forum! :slight_smile:

Jason

Thank you Jason. This information is very useful.

I just wanted follow up and tell you that after reading your description of selling short, I now have a clear and comfortable understanding of this process. You are my new hero!

Coming from the Silver Surfer that means a lot! :smiley:

DailyFX SSI:

“AUDUSD - The ratio of long to short positions in the AUDUSD stands at 1.07 as 52% of traders are long. Yesterday the ratio was 1.33; 57% of open positions were long. Long positions are 10.5% lower than yesterday and 10.8% above levels seen last week. Short positions are 11.2% higher than yesterday and 14.5% below levels seen last week. Open interest is 1.2% lower than yesterday and 14.2% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the AUDUSD may continue lower. The trading crowd has grown less net-long from yesterday but unchanged since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.”

Here’s a graph of the change in SSI over the past few months:

Green bars mean SSI is positive (retail traders are net long AUD/USD)
Brown bars mean SSI is negative (retail traders are net short AUD/USD)

AUD/USD has seen a divergence of the daily RSI, the market has reversed just ahead of the .9523, the 78.6% retracement of the move down from October 2013 and it has broken back below the .9448/60 resistance (November 2013 and the April high). This move higher is looking like it is struggling and me would opt to exit longs at this stage at cost. Resistance at .9523 together with the .9542 November 2013 high guards the .9757 October 2013 high. Key support is the .9367 2014 uptrend, while above here upside scope will be maintained. A move below the uptrend trigger losses to the .9203 support, recent low.

No change leaves AUDUSD short-term rangebound. While .9289/91 caps the immediate risk can stay lower to retest support at .9240/02 – the series of lows from April and May, next. While I would expect this to hold for now for a rebound, capitulation below here can set a much larger top, to target the 200-day average and 38.2% retracement of January/July rally at .9182/76 initially. I would expect this to hold for an initial bounce, ahead of another leg of weakness towards .9082. Above .9291 can complete a minor base for a recovery back to .9323/28. Above .9375 is needed to ease the downside bias.
Strategy: Short, stop above .9390, for .9240.

Aussie looking tricky right now…better to wait for a stronger signal and aim for more than that 20-30 Pips.

Its been in a range for a little while and has recently broken the Support, but not convincingly. Since weak breakouts lead to false breakouts and reversals, it could head back up.

DAILY CHART


On the other hand (yes I am an Economist lol) it could just be setting itself up for a stronger bearish signal. This would make more sense since we have broken an Uptrend Line and have been moving sideways, creating a type of plateau. There was even a false bullish breakout in the previous consolidation- strong signs of an exhausted trend and an imminent trend change.

DAILY CHART


Let´s wait and see what happens. Follow my thread in Swing Trading for my trading results if I see a good signal on this one

Unless there is an issue with the timestamp, I’m showing this post as submitted 8/18/2014 1:15PM EST.
Your D1 chart is missing about 5 days of data?

The Aussie is trading @ 9324 ish right now?
Were you sharing an old chart?

Just confused.

The AUSSIE confirmed a weak closing last night below the low of the previous session. A closing tonight below 0,9275 will confirm a top for the AUSSIE suggesting a drop toward the 200 days lien at 0,9178!! The indicators of the daily chart are still well negative as well as those of the s/t charts supporting further weakness. The drop favoured the retest of the previous bottom made this month failing to make a lower low, even in the hourly closing. In the s/t I see a possible retest of the 200 hours line at 0,9299 where I expect however strong resistance. However while below this line the scenery will remain negative. I prefer staying still on the side line!