Australian Dollar vs US Dollar Spot (mini) TODAY
Opinion: Couching shorts, hidden bears Price: 0.6616 MONITOR
Technical Points
Resistance
Major 2 0.67
Minor 0.6667
Major 1 0.6634
Minor 0.6606
Gravitation 0.6578
Minor 0.6545
Major 1 0.6512
Minor 0.6484
Major 2 0.6456
Support
Analysis:
The AUD/USD pair has recovered in-line with global equity markets recently, as risk appetite has increased.
This recent recovery looks likely to stall, however, which could see another round of selling pressure hit the Aussie dollar.
Over the last few days there have been some bearish technical patterns forming on the four-hour chart above.
Firstly, the immediate downtrend resistance line has managed to contain prices.
Secondly, the latest four-hour candle has a bearish upper shadow, suggesting a challenge of 0.6540 support is just around the corner.
Last but not least, the uncompleted four-hour candle could potentially turn out to be a bearish Harami formation.
As a result, we are looking to sell the Spot FX (mini) AUD/USD on stop at 0.6535, which would confirm a break below 0.6540 support.
If filled on this short, our stops will be placed 90 points above at 0.6620, above the short-term downtrend resistance line.
We will be targeting a drop to 0.6355, 180 points below entry.
This trade idea has not taken into account the ASR Capital Management Model and as such you will be risking more than $200 by following the relevant trade specifications.
Members may enter this trade based upon the above criteria at their own discretion and we will track the progress of this trade in the Model Portfolio page of the report.
How ASR Would Structure This Trade
Important Order Levels
Type of Order Sell on Stop Stop Distance 90
Order Level 6535 G-Stop Suggested (Y/N) No
Order Good Until Cancelled Target Distance 180
ASR Trade Sizing
Number of Contracts 2 Within ASR Cap Man Model? No
Type of Contracts minis Risk amount ($) at stop $275.00
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