[TW] 5-23-2011 - AUD/USD (Short) by Mynameisfez

AUDUSD, 4hr

Long or Short: short

Entry Point: 1.0690

Stop Loss: 1.0720

Profit Target/s: 1.0600 and 1.0520

Reward-to-risk Ratio: 3:1 and 5.6:1

Risk percentage: 0.5%

Indicators used:
-RSI (14)
-100 SMA (red line)

Trade Rationale:
-falling trend line, previous support/resistance area, 50% Fibonacci level
-risk aversion and falling commodity prices
-also, a lot of data from the U.S.

Trade Adjustments:
-I’m only gonna sell when RSI is already in the overbought area. I will take profit on half of my position at 1.0600 then move my stop to BE. I would then exit the other half at last week’s low at 1.0520. I won’t take this trade when price breaks above the trend line.