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Taking A Friday Afternoon Short In The AUD/USD

Posted Friday, October 20, 2017 by
Shain Vernier • 1 min read

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/USDAUD/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.

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