Sorry, too late for anyone to do anything with this, but I made some pips on AUD/USD earlier this week and thought you would want to see the trade, in light of our discussion last week.
We have been in a sustained uptrend on the Daily chart, which while currently stalled has not reversed. So my bias was for Long entries. We discussed last week the range on this pair, well this week the Hourly chart has shown a clear upper level of around 1.0615, with a rising trendline below that, giving us an ascending triangle.
All timeframes have recently been showing a lower Support level of around 1.0500. So with my Long bias from the Daily, and the ascending triangle on the Hourly, I looked for Long entries off the Hourly chart.
Monday morning (GMT) opened with a low test into the 1.0500 area on the Hourly chart, the 0900-1000 bar. I don’t like trading first thing on a Monday morning, so I did not take this, preferring to give the market a couple of hours to sort itself out (Price had made a lower low on the Friday before, so Monday could have seen this Support line break). The 1200-1300 Hourly bar gave us a second low test into this same Support zone. This is the trade I took.
My Entry was the break of the high of that bar, so the Entry was 1.0533, my Stop was below the low of the earlier low test (for only a few extra pips this is a lot safer), so at 1.0488, giving me a risk of 45 pips. I set my TP at 1.0600, just inside the established Resistance zone at the top of the ascending triangle (and five pips lower than the Weekly Pivot, which comes through at 1.0605). This gave me a 67 pip TP, for a 1.5:1 R:R. I risked 1% on the trade, so stood to make 1.5% if it went in my favour.
I could have been bolder with the trade, by taking the entry off the first low test (which would have worked out), or by setting my Stop below the low of the Entry bar (which also would have worked out), but given that this was Monday morning, and that the setup still gave me a good R:R, I was happy with how I played it.
It hit TP overnight Monday, so I started the week 1.5% up. I realize that this is in the past, so hope it does not just smack of showing off, but as you invited people to list their trades here, and given that we have just been discussing this pair, I thought that you might be interested in the trade. This was a very high probability setup, I’d take it every time I saw it.
ST