Looking at the longer term charts for the AUD/USD, I am getting a true appreciation of the extreme pricing of the pair. We are not all that far away from historical all-time highs. Not only that, the RBA has not been unknown to intervene when price heads into these extreme levels. I think if the pair were to head higher over the next few weeks, the likelihood of intervention would be a real possibility. On that note, I am cancelling the order to buy into the mid-94 area, and instead sell on remaining strength. We may well get a bounce at that 94 level and head back up again, but I am going to opt for the longer term trade here (the short) rather than the shorter term trade (the long). I will look to long again once the correction has run it's course.
At any rate, this is a counter trend trade, so others of you may look to still work that long trade should price dip. If you do, I would still consider taking profits and shorting at the 96 level once again.
Thanks. And I hope you find the commentary useful. I am told by my "techie" friend that if anyone is going to have any luck finding my blog I better actually add some content. I'm a trader not a computer guy, so I guess I'll have to take his word for it. And well, I suppose if it's helpful to you, then leaving the trading dashboard every once in a while to give an explanation of my trades is the right thing to do.
Details below:
OPEN POSITIONS:
===========================================
CIS* Alert Service (C044AS)
Date: Friday September 24, 2010
Action: Sold AUD/USD at current market levels ~95.9
Take Profit: 93.5
Stop Loss: 97.30
CIS* Complimentary Investment Strategy
ref: ws
------------------------------------------------------------
CIS* Alert Service (C043AS)
Date: Friday September 24, 2010
Action: Sold USD/JPY at current market prices ~84.3
Take Profit: 83.7
Stop Loss: 84.9
CIS* Complimentary Investment Strategy
Ref: mw
===========================================
PENDING ORDERS:
CIS* Alert Service (C042AS) I am taking the short instead. CANCELLING this order.
Date: Friday September 24, 2010
Action: Order to buy 1 unit AUD/USD @ 94.9
Take Profit: 95.8
Stop Loss: 94.4
CIS* Complimentary Investment Strategy
Ref: mw
------------------------------------------------------------------------------
CIS* Alert Service (C041AS)
Date: Friday September 24, 2010
Action: Order to buy 1 unit GBP/USD @ 1.5615
Take Profit: 1.572
Stop Loss: 1.555
CIS* Complimentary Investment Strategy
Ref: mw
------------------------------------------------------------------------------
CIS* Alert Service (C040AS)
Date: Friday September 24, 2010
Action: Order to buy 1 unit EUR/USD @ 1.340
Action: Order to buy 1 unit EUR/USD @ 1.337
Take Profit: 1.3445 and 1.353
Stop Loss: 1.335
CIS* Complimentary Investment Strategy
Ref: tcd
None at this time.
===========================================
CLOSED POSITIONS:
===========================================
Trade (C038AS) GBP/USD position was closed at our take profit level. :)
Trade (C039AS) EUR/USD position were closed for nominal profit.
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From the Desk of
Aaron Reid
Forex Strategist
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