AUDUSD Upside Relief -- Short term or even long term LONGS!
Hello Everyone.
Today we focus on an AUDUSD buy position that I just opened up as I am writing this text. We have seen strong downward pressure on the Aussie in the last couple days and weeks. We have now reached a possible spot for a short term reversal. Looking at the daily chart we find ourselves back down close to the 0.70000 even handle (psycholocial round number). We have already tested and failed to break this level twice in Octobter. The marked formed a nice double bottom and managed to get a little bit of a relief to the upside. We have now retested this level again and have not seen a break of these old lows in the last 2 days.
Current price action and indicators leed me to the conclusion of a possible short term upside momentum. My trade plan allows me to take trades with a risk to reward of at least 1 to 1.5. Based on my SL below the current market lows in the M30 chart my TP comes in pretty much spot on at older support/resistance levels.
I am specifically putting a tighter SL below the M30 lows and not below the most current daily lows since this is countertrend trade against heavy downward pressure.
Another option would be to take 2 positions. One of them with a tight TP at current support/resistance levels. In case that one gets hit, the second position could be secured by pulling the SL to breakeven and letting the position run with the potential of seeing a trend reversal in the daily chart.
Let me know what you think about this trade. Are you long or short, or are you just staying away from the AUDUSD as of right now.
Regards
Michael!
Today we focus on an AUDUSD buy position that I just opened up as I am writing this text. We have seen strong downward pressure on the Aussie in the last couple days and weeks. We have now reached a possible spot for a short term reversal. Looking at the daily chart we find ourselves back down close to the 0.70000 even handle (psycholocial round number). We have already tested and failed to break this level twice in Octobter. The marked formed a nice double bottom and managed to get a little bit of a relief to the upside. We have now retested this level again and have not seen a break of these old lows in the last 2 days.
Current price action and indicators leed me to the conclusion of a possible short term upside momentum. My trade plan allows me to take trades with a risk to reward of at least 1 to 1.5. Based on my SL below the current market lows in the M30 chart my TP comes in pretty much spot on at older support/resistance levels.
I am specifically putting a tighter SL below the M30 lows and not below the most current daily lows since this is countertrend trade against heavy downward pressure.
Another option would be to take 2 positions. One of them with a tight TP at current support/resistance levels. In case that one gets hit, the second position could be secured by pulling the SL to breakeven and letting the position run with the potential of seeing a trend reversal in the daily chart.
Let me know what you think about this trade. Are you long or short, or are you just staying away from the AUDUSD as of right now.
Regards
Michael!
Trade closed: stop reached:
Position got stopped out with a 20 pips loss. Still managed to gain back 14 pips because of a sell signal on the M1 timeframe.
For the Record tho it is going to be : -20 pips
For the Record tho it is going to be : -20 pips