The AUD/USD hit the 0.8466 resistance 3 times since early August and could not pass that barrier. This morning (01.01.09; 9am; EST) I entered a short position. The expectation is that the AUD/USD will not be able to break the resistance and will fall back to the support at 82.40
P: 0.84323
SL: 0.8533
TP: 0.8210
The timing of entering the position was risky, because the RBA interest rate decision was released at 14:30. However, this played out to my advantage. The expectation was a hawkish commentary (indicating rising rates). But the RBA stayed neutral and therefore the AUD droped 0.8412 by now. More event risk tomorrow Wed 02.09.09; 11:30 EST with the release of the Australian Q2 GDP figures.
Also indicating a weaker AUD is the fact that the Australian economy is largely depended on China's hunger for natural resources. China's Shanghai Composite Index dropped 20% over the last two weeks on worries about over-capacities and restrictive lending.
P: 0.84323
SL: 0.8533
TP: 0.8210
The timing of entering the position was risky, because the RBA interest rate decision was released at 14:30. However, this played out to my advantage. The expectation was a hawkish commentary (indicating rising rates). But the RBA stayed neutral and therefore the AUD droped 0.8412 by now. More event risk tomorrow Wed 02.09.09; 11:30 EST with the release of the Australian Q2 GDP figures.
Also indicating a weaker AUD is the fact that the Australian economy is largely depended on China's hunger for natural resources. China's Shanghai Composite Index dropped 20% over the last two weeks on worries about over-capacities and restrictive lending.
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