From a technical perspective, it looks like the AUD/USD rally is overdone as it reached the top of the 4-hour channel around 1.0400 resistance. Stochastic is already deep in the overbought area.
From a fundamental point of view, I think dollar buying could resume since the Fed policymakers don’t seem to be too eager to implement further quantitative easing just yet. Because of that, the Greenback could retain its safe-haven status while global economic threats (euro zone debt crisis, slowdown in economic activity) are still present.
Trade details:
Short AUD/USD at 1.0400, stop loss at 1.0450, profit target at 1.0200.
I am short biased too but I have a problem with entry points.
We’re @ 1.0376 now and you don’t know if it will get back first to 1.0400.
Also sl is at a dangerous place. Much to close to the recent top and we still have the bigger resistance @ 1.0473
Ur setup is simple and precise. Ur entry point is just above 21EMA and take profit sits on the 200 EMA which i think are good entry and exit strategies. Iam with u on this one.
