[TW] 2012-08-06 Short AUD/USD by littlebopip

[littlebopip]

Pair: AUD/USD (again!)

Time frame: Daily

Long or short: Short

Chart:



Trade rationale: I'm gonna short this pair again as it climbed back up to the top of the channel that I played last week. At that time, I won Trade of the Week and also scored 200 pips on my trade

This time I'm looking at a bearish divergence on the daily chart and counting on risk aversion after Draghi's disappointing statement to drive AUD/USD back down to the bottom of the channel.

Trade details:

Short AUD/USD at 1.0550, stop loss at 1.0650, PT at 1.0350. I'll add to my position at 1.0450, giving me a potential 3:1 return on this trade.

[kevodhi]

looks good. hope it works for you. all the best.

[mnukf]

Best of luck and i am also short

[jamessheppard]

I am also following the channel on daily timeframe. Are you not worried though that you are entering just as there has been a large indecision candle followed by a large bullish candle? There is no prvious resistence until round the 1.0614-1.0700 so price could get real close to your stop. Dont get me wrong i think price is going to drop just not sure if entering at this moment without some price action to back it up.

[anotherusernamemade]

By extension would you also say NZD/USD is a good short? From 0.82 down to 0.81?

[shelleylicia]

I'm curious... can we trade against the uptrend?

[hemanth123]

please help me i am also a new member soi work at etoro so is that safe to buy AUD/USD so that can i be in profit please let me know

[jamessheppard]

please help me i am also a new member soi work at etoro so is that safe to buy AUD/USD so that can i be in profit please let me know

I think there is some minor support at 1.0526. Once that breaks we could see a drop to around 1.0442 where the next area is. Until then it is anyones guess as to what price will do.

[jkrup44]

please help me i am also a new member soi work at etoro so is that safe to buy AUD/USD so that can i be in profit please let me know

I would say no, it's not safe to buy it. As the chart shows, price action is bearish after it approached the channel resistance. If you think it will continue to follow the pattern, then you would go short.

[jkrup44]

Personally, I would rather wait until it bounces off of the channel support and then go long. That way I get to hang with my friend named Trend. It should take maybe about a week for that setup to be ready. The recommended trade is nice though.