[TW] 8-22-2011 SHORT AUDUSD by Jabroni

revisiting AUDUSD!

AUDUSD daily and 1H charts

Long or Short: short

Entry Point: 1.0400

Stop Loss: 1.0530

Profit Target/s: 1.0000 ultimate target, but i may close along the way

Reward-to-risk Ratio: if all goes well, around 3:1

Risk percentage: 2%

Indicators used: RSI 9

Trade Rationale:
-daily chart shows bearish engulfing candle forming, strong bearishness for commodity dollars
-1.0400 is in the Fib area
-1H chart shows 1.0400 is a proven support and resistance
-risk aversion

Trade Adjustments: move stop to break even once i’ve covered my stop loss (+130). i may close early if i get signs from the market.


On H1 we see that the 50% are broken, so I would not expect a down trend. I would rather bet on a rally back to 1.10 (the last high reached on July 27th).
On a D1, if you plot a fib between the low on May 25th (0.8061) and the high on July 27th (1.1078), you find the rebound at exactly 61.8% on Aug 9th (0.9928).
Based on this, I would expect a long retracement to the highest point at 1.1078.

Sorry mate, I won’t follow you on your trade :wink: