AUDUSD DOWNTREND CONTINUATION FOLLOWING USD INTEREST RATES 09/23
Updated
AUDUSD has been in a bear market July 2023.
Price stalled out and ranged since August 2023.
We have since seen bulls try to break out of this 3-month range and failed every time.
The resistance is around 0.6530, which is yet to be broken.
We recently have seen a strong rejection of that resistance following last weeks USD interest rates.
The Australian Dollar has been a weak currency in the basket of majors for several months this year and the United States Dollar has been getting stronger.
I am awaiting my trigger just below 0.64159 and am a bit late to the action so my P/L will not be as ideal as I planned but I will take what I can get and still be realistic with the target which is sitting at 0.6360 lows which is also where many longer term buyers may have their stop losses if the uptrend doesn't work out in their favor.
I will be utilizing a trailing stop loss along the progression of the trade and have my hard stop around today's daily highs in case it does not work out in my favor.
If the trade fails then the price may go back into chop or could be a possible reversal towards range highs of 0.64159.
Price stalled out and ranged since August 2023.
We have since seen bulls try to break out of this 3-month range and failed every time.
The resistance is around 0.6530, which is yet to be broken.
We recently have seen a strong rejection of that resistance following last weeks USD interest rates.
The Australian Dollar has been a weak currency in the basket of majors for several months this year and the United States Dollar has been getting stronger.
I am awaiting my trigger just below 0.64159 and am a bit late to the action so my P/L will not be as ideal as I planned but I will take what I can get and still be realistic with the target which is sitting at 0.6360 lows which is also where many longer term buyers may have their stop losses if the uptrend doesn't work out in their favor.
I will be utilizing a trailing stop loss along the progression of the trade and have my hard stop around today's daily highs in case it does not work out in my favor.
If the trade fails then the price may go back into chop or could be a possible reversal towards range highs of 0.64159.
Trade active
I am triggered in and have an active trailing stop just above 0.64384.My overall risk exposure is now 0.69R.
Trade active
I am checking my position and will trail my stop loss to 0.64362 which is about 16 pips or 0.6R.This downtrend is still in tact but was recently disrupted with a false break this past 4-hours. I see a possibility for bears to continue to push price down but will get out a a partial loss if price surges beyond by trailing stop because we will be in choppy market conditions and I will not be interested in holding shorts at that point.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.