I've entered a quick scalping move trying to trade a developing range / consolidation.
I can see how AUD/USD has hit some resistance and price has decelerated just at the level we can see a broken support level. These two points together gives me the motivation that some quick profit could be made in price consolidating more and returning to the bottom of the highlighted box range.
Risk is defined on a break of this box to the upside.
Some outside confluence for this idea is that I also have a short bias on Gold, AUD/USD is positively correlated to Gold due to how dependent the Aussie economy is on Gold exports. If Gold does fall in value then we could see AUD/USD retest the 0.70000 region.
I can see how AUD/USD has hit some resistance and price has decelerated just at the level we can see a broken support level. These two points together gives me the motivation that some quick profit could be made in price consolidating more and returning to the bottom of the highlighted box range.
Risk is defined on a break of this box to the upside.
Some outside confluence for this idea is that I also have a short bias on Gold, AUD/USD is positively correlated to Gold due to how dependent the Aussie economy is on Gold exports. If Gold does fall in value then we could see AUD/USD retest the 0.70000 region.
Trade closed: stop reached:
Some overnight bullish action has stopped the trade.
Trade closed: stop reached:
Overnight volatility hit Stop Loss and then hit Target Profit. Ouch.
