Trade Of The Day: AUDUSD Selling The RBA Bounce, Flat +181pips

AUDUSD – Testing resistance post RBA bounce

The RBA left the policy rate unchanged at 2.0%, versus market pricing for 30% probability of a 25bp rate cut. However, there was a dovish change to the language around inflation, noting “the inflation outlook may afford scope for further easing of policy”. The combination of unchanged rates but a slightly dovish statement is likely to be a mild positive for the AUD very near term.

Buyers emerged at retest of pivotal .7030/50 next, a close above .7230 eases bearish pressure a refocuses bulls to test offers towards .7350. While .7230 caps the upside expect rotation lower targeting year to date lows next.

Trade Idea

  • I will be watching AUDUSD today. I am looking to play this pair from the short side for another leg of corrective price action leaning against .7230/50 resistance zone, monitoring intraday reversal patterns to venture short.
  • This trade benefits from bearish daily Order Flow and bearish COT positioning, the overnight push higher will have cleared out some late shorts and provides a premium entry opportunity.

Trade Update

  • Moving stops to risk free on this position now, short .7211, securing 50pips profits so far
  • Trail stops to .7111, securing 100pips profits so far
  • Covered my position at .7030, flat +181pips risk at entry 40pips

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Posted in Daily Setups, Forex Analysis, Performance, tagged with on