AUDUSD could find a modicum of support at these levels. Cable is at the mercy of ongoing division within the UK’s Conservative party.
I’m not ready to ‘Chicken Little’ the AUDUSD. Read Ryan’s recent musings on Aussie here. The sky hasn’t fallen in yet, and i am looking for long trades short term .Yesterdays intraday rally and roll over in GBP shows how fragile cable can be at this time trading against the trend. The real danger in this trade is the possibility that the May government can make progress in this round of Brexit talks.
GBPAUD My idea is to sell using 1.7010 as my cut off point to void this trade idea. Price held at the 50% of the last swing high/low and has turned down. I will be watching to take a short below 1.69 going into the London session and/or sell subsequent rallies .My trade targets are detailed on the chart below at 1.6670 – 1.6560. I will be easing myself into this trade in order to keeps my stops wider than normal – as these are big targets.
GBPAUD-H4
I will post updates here during the day – No positions entered at time of posting . Around 1.6930 looks good for a feeler short .
—8.52 GMT—- update short trade taken 1.6947 after UK data
Philosophy: "Trading rules.....it most certainly does"
Read how Horatio got into trading here
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I like that trade idea Horie, it assumes the Aussie will rise somewhat or the Quid will drop like a stone or both. But for the Aussie, there are a couple of head winds above the current PA. There are a couple of speed humps in the form of 100 DMA @ 0.77884 and 100 H1 MA @ 0.77946