Open trading account 
Although it was Christmas and we didn't had proper trading conditions but I still have had 2 opened positions which where closed today as my taking profit order was reached. I had five fundamental reasons behind my AUD bearish view:
In Figure 1 you can see that I choose to use a trailing stop on my AUD/USD short position, after I saw that my initial target was missed by 1 pip I decided to move my SL, 10 pips away from my entry point. I was very conservative but at the same time didn't wanted to let a winner turning in to a loser.
I also had a long GBP/AUD position(see Figure 2) because the same time I was expecting GBP to get stronger and with my bearish view on AUD I said that the best way to maximize my profits was to trade GBP/AUD as it will have much bigger movement than GBP/USD. You can check out my view on the pound in my blog history posts here. Basically it was more a kind of synthetic trade. Although I had strong fundamental reasons behind my trades the technicals were in my favor as well.
I have decided to take profits at the first trouble area for both of my trades as during this time of the year the market likes to spend it in a tight range and/or have erratic movements.
Best Regards,
Daytrader21
- Few months ago RBA cut interest rate at historic low.
- RBA has decided to kept the door open for another round of interest rate cut if the economy is not showing signs of recovery.
- IMF suggested that the aussie dollar is 10% overvalued.
- Fed 10B tapering will put pressure on AUD/USD.
- Aggressive verbal intervention from RBA governor who said that lower aussie is preferable to rates to help the economy. RBA's Stevens said that Australia needs AUD/USD closer to an 0.8500 exchange rate.
- Figure 1. AUD/USD 1h chart.
In Figure 1 you can see that I choose to use a trailing stop on my AUD/USD short position, after I saw that my initial target was missed by 1 pip I decided to move my SL, 10 pips away from my entry point. I was very conservative but at the same time didn't wanted to let a winner turning in to a loser.
I also had a long GBP/AUD position(see Figure 2) because the same time I was expecting GBP to get stronger and with my bearish view on AUD I said that the best way to maximize my profits was to trade GBP/AUD as it will have much bigger movement than GBP/USD. You can check out my view on the pound in my blog history posts here. Basically it was more a kind of synthetic trade. Although I had strong fundamental reasons behind my trades the technicals were in my favor as well.
- Figure 2. GBP/AUD 1h chart.
I have decided to take profits at the first trouble area for both of my trades as during this time of the year the market likes to spend it in a tight range and/or have erratic movements.
Best Regards,
Daytrader21
