bunna
Short

AUDUSD W1 over bought and diverging

FX:AUDUSD   Australian Dollar/U.S. Dollar
372 10 2
Fed QE             hopes has provided a good opportunity to short the AUDUSD             .
2 weeks ago price closed just below the upper trend line from 24/7 and 5/2 with a candlestick doji followed by a bearish engulfing candle.
ADX is showing no trend so use of the Stochastics indicates overbought levels with bearish divergence, further supporting this trade.
I have personally taken a short position @ 1.052 with a stop @ 1.064 which is above the 3 week high and trend line resistance.
My target is @ 1.028 where we have 20,50,100 SMA confluence providing a R/R of 1:1.85
Second and Third targets would be at parity and the lower trend line respectively.
zachogden
4 years ago
D and 4H charts agree...seems like we've just passed a top and are in a good position to short.
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bunna zachogden
4 years ago
i use the weekly chart for directional bias and swing trade positioning while using smaller time frames to layer on which I prefer to cover intraday but do not tend to post here.
Fundamentally I like this trade as data from China and Australia has been weak but try to reduce my positions over the weekend.
Good Luck!
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lizfxtrader
4 years ago
I'm still favouring the short option at 1.0260 being the next target
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bunna lizfxtrader
4 years ago
It really depends on your timeframe so i adjust my targets as the MAs change. I'd be looking to take some off @ 1.034 tho as we should see support when it hits the 200dma and reenter on the bounce. fx tends to overshoot their targets so I can see 1.026 but personally I aim for px with high risk of reversal
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lizfxtrader
4 years ago
Hello bunna

Glad to see your 1.034 range reached, I'm still going short in search of 1.0260

Good luck
ilearn2t
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bunna lizfxtrader
4 years ago
Hi Liz,

Thanks, I covered the majority of my position after data from Australia missed this morning but am still holding a small short from 1.052 with my stop moved to 1.045. I'm now looking at the aussie crosses as I'm waiting to see what comes out of Jackson Hole first to minimise risk.

Good luck! Hope you make your target. 😊
Reply
lizfxtrader bunna
4 years ago
Hello bunna

I can afford on last go at my 0.00 weekly fibo (1.0421) line if all goes wrong, but hopefully it will hit my -82.0 mark (1.0257) before hand.

If it hits 1.0450 before hand, all orders will be closed and back to drawing board.

Save trading.
Liz
Reply
bunna lizfxtrader
4 years ago
Hi Liz,

Grats, looks like your target should be hit easily. I reloaded @ 1.033 and have moved my 2nd target to 1.018.
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