Seven of our nine trades last month were short positions the Aussie or Kiwi, and those established downtrends have carried over into this week’s trade. After a big breakdown in AUD/USD last week, we’re going back to the well with another short setup in AUD/USD.
We’ve recently described AUD/USD as the “cleanest trend in the FX market,” with a well-defined bearish channel guiding rates lower for over eight months now. The pair spent the first four days of last week’s trade consolidating around 0.7200 before dropping sharply to a 2.5-year low near 0.7100 in Friday’s risk-off trade.
Zooming into the hourly chart, we can see that rates have been consolidating and drifting back toward the breakdown level in the mid-0.7100s. The lack of an immediate reversal increases the probability of a legitimate breakdown and potential continuation down toward 0.7000 this week.
Place your stop at 0.07191 and your limit at 0.6975. This is a 60-point stop, so be sure to adjust your position size to maintain consistent monetary risk on the trade.
We’ve recently described AUD/USD as the “cleanest trend in the FX market,” with a well-defined bearish channel guiding rates lower for over eight months now. The pair spent the first four days of last week’s trade consolidating around 0.7200 before dropping sharply to a 2.5-year low near 0.7100 in Friday’s risk-off trade.
Zooming into the hourly chart, we can see that rates have been consolidating and drifting back toward the breakdown level in the mid-0.7100s. The lack of an immediate reversal increases the probability of a legitimate breakdown and potential continuation down toward 0.7000 this week.
Place your stop at 0.07191 and your limit at 0.6975. This is a 60-point stop, so be sure to adjust your position size to maintain consistent monetary risk on the trade.
İşlem elle kapatılmış:
After consolidating around the 0.7100 handle for the first half of the trading week, AUD/USD is breaking to new weekly highs above 0.7130 as of writing.
With the pair seeing a bullish breakout from consolidation and a looming event risk from tonight's AU jobs report, we're closing the trade for a small profit here.
With the pair seeing a bullish breakout from consolidation and a looming event risk from tonight's AU jobs report, we're closing the trade for a small profit here.