[B]Long or Short:[/B] Short
[B]Entry Point:[/B] 1.0775
[B]Stop Loss:[/B] 1.0860
[B]Profit Target/s: [/B]1.0700 | 1.0600 | 1.0500
[B]Reward-to-risk Ratio:[/B] 6.17:1 if all profit targets get hit
[B]Risk percentage:[/B] 1%
[B]Indicators used:[/B] None
[B]Trade Rationale:[/B]
We’ll probably see risk aversion next week after the ECB already raised interest rates and the weak NFP report was released. China’s tightening could also pose threats to the Aussie and the other comdolls.
Technically there’s a falling channel on the 4-hour chart (seen better on the daily chart) and AUD/USD is now near the top. On the 4-hour chart there’s a double top forming so a short idea seems profitable, especially when my stop is placed above the channel and 1.0800.
I placed my profit targets at major 1.0700, 1.0600, and 1.0500 areas for better risk-reward ratios.
[B]Trade Adjustments:[/B]
I will move my stop to break-even if price hits 1.0700, add positions at 1.0700 and 1.0600, then close all trades if price hits 1.0500.