Short AUDUSD @ 1.0280, SL 1.0320

2.04 bst

This one got away from me last Friday when I didn’t take a very strong sell signal at 1.0530! I have watched it closely and again missed an opportunity to enter near 1.0380 yesterday. Today’s imminent break of support and with gold/silver turning down again ahead of the weekend means we will see another leg lower in the AUD. This level also offers a tight stop level, so here I go:

Short $40/pip AUDUSD at 1.0280, SL at 1.0320.

Target? who knows, lets see where the charts bottom!

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7 thoughts on “Short AUDUSD @ 1.0280, SL 1.0320

  1. dani

    Im fighting to understand your views..Once again you went short right at the support.. with RSI 14 in 4hr TF showing bears are losing power.. well good luck.. rly hope you dont get caught by short covering.

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    1. ZenFXTrader

      I did miss the better entry level at 1.0380, but this pair is in a big downtrend. A break of yesterday’s lows is significant. I don’t see support until a minor one at 1.0260. I reckon Europe and NY will take it lower. If it doesn’t go lower in the Europe session I will exit. This is what makes a market – some expect a bounce, some expect a continuation of the trend. I don’t use RSI/Stoch type of indicators at all – they are lagging and pretty useless in a trending market.

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      1. Nelson

        RSI worthless in a trending market? Wow…I haven’t heard that one before. I agree with the first post; you are once again entering a short position while price sits at a fairly respected support level. And to expect this trade to be successful hours from now, with such a tight stop, is expecting to much my friend. I too wish you luck though! I have read your posts for about a week now and you absolutely know what you are doing…I’m just very curious as to what system you use.

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  2. Hans

    Zen, I just have to back you up here. Any kind of indicator is useless. All it does is tell you what happened. Whenever price moves along ‘overbought/oversold’ means nothing. Having said that, the 290-275 area looks quite supportive on a 4h chart, having been resistance, as does the 330-350 does now from a bearish prespective looks resistance to the upside.

    Good luck.

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    1. ZenFXTrader

      Yes, that is what I mean. All indicators are ‘lagging’. They tell us what has happened and by the time the indicator has turned it is usually too late. Hence I rely mainly on price patterns, classical chart analysis.
      My sentiment reading was telling me that we should see one more leg down today; it appears that we will need a decent bounce before a leg down.

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  3. dani

    I can agree on stochastics.. but not on RSI 14 – one of the best tools to find tops and bottoms.. not on daily TFs if the pair is too much volatile. but on 4Hr TF.. oh man.. one of the best for sure. good luck with your new long. hope it works. as iam long from 1.280 for a correction to the main downward TL maybe 1.380-360

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    1. ZenFXTrader

      Good call on the AUD support Dani, obviously I was wrong. I thought we will see a further leg down before a bounce into the weekend. But I disagree on the value of RSI/Stoch/Williams etc. They are all oscillators, essentially the same, just slight differences in the mathematical equations. You will find that just eyeballing a chart for support / resistance will give you as good if not better results than any oscillator. Anyway, if it works for you, good for you.

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