Anyone shorting AUD/USD

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!

Same here, I’m staying on the sidelines for AUDUSD for now. Looks like both currencies are fundamentally strong so the pair might range for a while, unless risk sentiment shows a clearer direction.

The AUSSIE confirmed a negative closing on Friday while remaining interior the previous day’s range forming a new inside day with 0,9390 – 0,9315 the levels to follow in the coming hours! The closing was again below the 100 days line! The weekly closing was positive as well as the monthly one where it even failed to confirm the previous months’ negative month reversal.
The indicators of the daily chart are still well positive as well as those of the weekly one but the indicators of the monthly chart are negative. The indicators of the s/t charts are mixed today suggesting some consolidation. However, while above the 200 hours line at 0,9320 we expect the AUSSIE to move higher toward a possible target at 0,9382!!
We stay on the sideline following the inside day!

Talk about stopping volume…


The pair confirmed a weak closing last night but it is already recovering all what it made yesterday on the downside. A closing at the present levels will confirm a positive outside day suggesting a retest of the 0,9375 level that could be the neck line of a reversed S_H_S formation with a double head or a double bottom!! The indicators of the daily chart are already returning above the line and of course also those of the s/t ones are positive suggesting higher levels. In the hourly chart we have however overbought conditions after having formed bullish divergences on the way down. An hourly closing above 0,9366 will however abort the negative reversals already re-launching the move up! We stay on the side line waiting for confirmations!

The pair confirmed a positive closing last night but it failed to confirm the move above 0,9375 and even that above the 55 days line at 0,9356. However, while above the 0,9340 level we expect the AUSSIE to try further on the upside!! The indicators of the daily chart are still well positive for now while those of the s/t charts are showing a mixed picture suggesting some consolidation/ correction. However, only a break below 0,9330 will support a deeper correction; while above we favour a 0,9400 overshooting!!


After finally breaking below the 200-day moving average on 9/10 (and making a new 100-day low), I waited for the first positive day which came on 9/16 with a 126 pip move up. I put on an order to get in just below any new break to a new low and it was triggered the very next day on 9/18 and I went short at 0.8979. We are now less than 30 pips from the January low into territory not seen since 2010.

Tracking the 3-day high, my stop has me locking in 87 pips and I am waiting for the 7-day high to catch up with my stop so I can groom it along the 7-day high while letting this trade breathe. Don’t pick bottoms, stay short.