Potential Trade Plan
Trade Action: SELL A BREAK
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.
Result: LOSING TRADE
Final Execution Details
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
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.
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