Wednesday, 28 September 2011

Trade Idea - AUDUSD Long 0.9660

Here's another set-up that, frankly, I doubt I will take as the list of "cons" is simply too long. There's an identical pattern on AUDJPY which I'm far too lazy to post.

Tempting as this trade may be, I need to see more evidence of a trend change before I enter the market long. The primary concern is the lack of trend line break. The weekly and monthly SMA's are clearly down, and I don't see any trend line support. In terms of what I look for in a trade, it's simply not all there.

In contrast, the short AUDNZD posted earlier in the week ticks every box. It's the kind of trade I could take in confidence, knowing that I have done everything possible to improve my probabilities; a trade that I could take without fear of recrimination.