Monday morning in the Ozzie

Last week I wrote that I shorted the AUD/USD at .8738. I’m still short. After hitting a low this morning of .8587 it’s back up a bit. Currently I’m at 94 pips profit as I write this. I’ve moved my stop to keep 20 of those pips. I may move it closer depending on how the pair behaves in the next hour or so. It’s well back into the consolidation range I wrote about extensively in the past couple of weeks. 45°

Here’s my one-hour, three box point and figure (P&F) chart. Notice the simple triple top it broke on its ascent. It could head back to that level before it resumes its climb. That would make a nice profit target of .8480 to .8520. What’s important to remember is that the pair remains technically in an overall uptrend that began in March. If the pair violates the trend lines I’ll be happier being short in this pair (actually very happy). But until that happens, I’m thinking reaction in an uptrend. That doesn’t mean you can’t make money from going counter to the trend. It does mean you have to be alert and not get all gaga over the trade. Now that I think about it, never get all gaga over a trade.

As always, this isn't a trading recommendation in any way. Trading Forex, or anything I guess, involves substantial risk and is not for the faint of heart.

© Dianne Fecteau, 2009. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.