Pair: AUD/USD (again!)
Time frame: Daily
Long or short: Short
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.
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.