Taking A Friday Afternoon Short In The AUD/USD
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/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.