Hello traders! My first published idea, so please take it easy. With that said, I encourage any thoughts.
With such a sharp move on Friday across all USD pairs, I suspect a retracement of some kind on the shorter time frames. Overall, I have a bearish opinion of the Aussie stemming from poor fundamentals. However, a bullish opportunity may arise if there's a clear break above .720 zone. If a rejection is made in the .720 zone, a selling opportunity may be in order with support in the .700 zone.
Tuesday will offer volatility and a clearer picture as the CPI reports are released.
Hope to hear from some of you and happy trading!
With such a sharp move on Friday across all USD pairs, I suspect a retracement of some kind on the shorter time frames. Overall, I have a bearish opinion of the Aussie stemming from poor fundamentals. However, a bullish opportunity may arise if there's a clear break above .720 zone. If a rejection is made in the .720 zone, a selling opportunity may be in order with support in the .700 zone.
Tuesday will offer volatility and a clearer picture as the CPI reports are released.
Hope to hear from some of you and happy trading!
Comment:
Another nice week for the bulls as the .7240 zone was broken. Personally I'll be looking for a buy w/ a stop @ .7180. A more conservative trader might wait for another bullish candle. Also keep in mind RBA rate decision is this week.
Comment:
The flurry of negative publicity this week sent the Aussie sliding to a retest of the .723 zone. First there was the finalization of the federal banking inquiry, which again emphasized a culture of corruption and ultimately uncertainty in the banking industry. Secondly, the building approvals report wildly missed consensus expectations. With the trade balance and rate statement reports expected in half a day, I expect nice volatility in this zone and perhaps some good trading opportunities.
Comment:
The pair just made a pretty nice break below the .7230 zone about half an hour before the trade imbalance report. I think any short is reasonably safe so long you're watching the screen.
