Pair: AUD/USD
Long or short: Short
Time frame: 4-hour
Chart:
Trade details: Short AUD/USD at 1.0650, stop loss at 1.0700, PT at 1.0550.
Trade rationale:
AUD/USD pulled back to retest the broken support at the 1.0650 level. This is in line with the 38.2% retracement level on the 4-hour chart so I thought it’d be a good short entry. Stochastic is also almost overbought so I’ll enter once it turns from that area.
Economic reports from Australia have been week recently. Ex: GDP, employment figures, and trade balance. Also, China just released poor CPI so that might be negative for the Australian dollar too.
Risk: I’ll risk 1% on this position so I’m going for a 2:1 reward-to-risk.