Taking A Friday Afternoon Short In The AUD/USD

The AUD/USD has been in a freefall for the entirety of today’s session. Currently, it is trading .7816-20, in a bearish daily pattern. If we see a bit of a bump from here, there is a good location on the board to grab a few pips going into the weekend.

AUD/USD, Daily Chart

They say the trend is your friend. Well, if price comes to our resistance levels, we will find out:

• Resistance 1: Intraday 38% retracement   .7835

• Resistance 2: Daily SMA .7841

• Resistance 3: 20 Day EMA .7853

Price has bounced off of the intraday low and may give us a shot at getting short for the rest of the U.S. session.

The Trade: A short from .7830-.7835 with an initial stop above the 20 Day EMA at .7853 will give a solid 1:1 risk/reward payoff to the bear. A tighter scalp from .7835 with a stop above .7841 is a less expensive way to play the price action.

Either way, watch the leverage and be sure to check in later on for trade management ideas if this play goes live.

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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