[TW] 2012-07-23 AUD/USD Short by littlebopip

#1

Pair: AUD/USD

Time frame: 4-hour

Long or Short: Short

Chart:

TOTW.AUDUSD.jpg700×303 22.8 KB

Trade Rationale:

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.

Reward to risk:

Potential 4:1 trade.

#2

Great setup, I am agree with you.

#3

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

#4

In my opinion, even at 1.0376 it is good sell with stop loss of 1.0450.

#5

I do agree with your entry, I don’t agree with your sl

We’ll just have to wait and see

#6

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.

#7

best of luck, but i will close my half at 1.0280 and bring rest SL to Breakeven :wink:

#8

Nice job! I wish I was able to take this trade, too. Oh well, keep those pips comin’!

#9

Your simple analysis has made me good money this week i was with you all the way. Thnk you!!

Keep it coming!