Before going to bed last night, I opened a forex signal. I checked my charts and saw that the Aussie had put an impressive pullback in the late evening, after the "great" USD advance in the first hours of the US trading session.
That looked like a good opportunity to sell this forex pair. All the technical indicators we usually base our trading strategies on fell in line, stochastic was overbought, and RSI was overbought as well, besides being near a resistance level.
I thought for a moment that perhaps selling NZD/USD might offer better odds instead, but the problem with that pair is that if the trend changes and the bulls decide to take charge, the retrace down would be too shallow to even get close to the take profit target.
With AUD/USD, if it decides to change direction, you can still have a chance even if you are in the wrong direction.
Anyway, EUR/USD has started the next leg down this morning, but the Aussie is being stubborn. In our defense, the USD has barely changed this morning against most majors, so we still have a short if the USD buyers return to the table. However, it is a bit disheartening to see that the bears are not fighting their fight so far.
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