Trade Set-Up

Potential Trade Plan

Trade Action:   SELL A BREAK

Entry                      0.6520

Stop Loss             -30 pips

Take Profit           +90 pips

Trailing Stop Structure

1st Move                 20.0

1st S/L                       19.0

2nd Move              40.0

2nd S/L                    20.0

3rd Move                60.0

3rd Trailing S/L      20.0

Chart & Forecast Details – BEARISH

The AUDUSD has had a massive run on the back of news of a potential vaccine for the Coronavirus which saw a massive reversal of the USD safe-haven trade. But all is not forgotten as we know the Aussie economy is on its knees regardless of the Pandemic. So I think it’s only a matter of time before we see a pullback towards 0.6450 at the very least.

This is a bit more of a higher-risk trade as we are going against the current momentum in the market but I think once it subsides and the AUDUSD breaks back down through 0.6530 we should see it run back to the downside.

Outcome

Result: LOSING TRADE

Final Execution Details

Entry                   0.6531

Took Profit         0.6441

Stopped Out      0.6460

Trailing Stop Structure

1st Move              20.0

1st S/L                    19.0

2nd Move           40.0

2nd S/L                 20.0

3rd Move             60.0

3rd Trailing S/L   20.0

What Happened?

The trade started out well with the AUDUSD finding sellers above 0.6530 and pushing down towards 0.6510, where it stalled. The retest of 0.6530 was making the trade look even better as it failed on a few attempts to go higher. But once Europe opened up there was a wave of stops triggered across all major pairs and the position was taken out.

I still like it lower but we need to wait for downside momentum to kick into gear. I will also be adjusting my take profit exits to make sure I lock in some cash at 20 pips next time.

Brad Gilbert

CEO & Founder of Traders4Traders – Brad has been trading for 28 years and was a former Chief FX Trader for Citibank. Brad trades all markets and all timezones.

Trades: EUR, GBP, AUD, NZD, CAD, JPY, CHF, DOW, SP500, OIL, GOLD

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