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.
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.
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.
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.
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.
Short from 1.0600 and was thinking now bullish, but after looking at it again properly today after your post a sell (or hold short) now still looks good.
Draghi = hot air
Although showed hidden bearish divergence earlier in the week and nothing happened, you’d think it really can’t go much higher now.[ News right now USD- broadly higher against its major counterparts] this could also bring the aus down a bit.
Weekly: Long (technicals)
DAILY : posible SHORT (news / technicals)
4H: SHORT to 1.0551 (news / technicals) stronger USD / bearish divergence ( holding short to 1.0499) :33:
1H: Long
Good Trade. like the 3:1 :22:
Only problem is I do not like the idea of shorting in an uptrend! :33:
I’m not sure, in my trading “Army” my “General Rule” is saying “DONT TRADE AGAIST THE TREND private! drop and give me 20 pips!”
So I am a bit uneasy about this one and will leave it to my trading computer to make the call without any emotional turbulance. I’ve just recently coded my system into an MT4 EA and now into Java [[110% return this week on EURUSD] 142pips]
I’ve plugged in AUSUSD and
it says…keep short for now…(never used this on AUSUSD B4 so fingers crossed… :44:
