Update on AUD/USD short

This is an update re the analysis and suggested trade from this post:

http://market-trading-ideas.blogspot.com/2009/09/short-audaud-resistance-at-08466.html

• I closed 50% of the position at 0.8263 (169 pips gain).
• I re-entered short at 0.8350.

Considering the initial Price (P: 0.8432), Stop-Loss (SL: 0.8533) and Take-Profit (TP: 0.8210) combination, this was a bit “un-disciplined” skewing the risk/reward ratio. On the other hand, a 1 day gain of 169 pips was just too tempting.


I re-entered short today at 0.8350. Considering weakness in the share markets, especially in China (see Shanghai Composite), I predict some risk aversion in the near future. This will most likely lead to lower prices on the AUD/USD, because the Australian economy is highly dependent on natural resources/ exports too China.


The next TP targets are just above the recent lows at 82.00 and 78.00. If 82.00 gets reached, I will exit again 50% of the position. I adjusted SL to 85.05