Top trade idea for August 4th, 2016 – AUDUSD
By Mircea Vasiu on Aug 4, 2016 07:42:06 GMT
The ugly chart above is the audusd pair that is looking as bearish as bearish can be despite the heavy buying on each and every dip. Not even the RBA (Reserve Bank of Australia) rate cut wasn’t able to bring this beast down, despite the fact that only 70% chances were priced in. It doesn’t make it bullish though!
The pattern is a corrective one, even if it is labeled with numbers, and by the time it is completed it should result in a full retracement all the way until the middle 0.71 range. I know it sounds like a big distance to be travelled, but it is the way it is and bulls are warned.
Even if NFP (Non-Farm Payrolls) on Friday are going to disappoint, at these levels, namely above 0.76, we don’t want to look but to the downside.
Therefore, staying short for 0.72 with 0.78 stop loss is the way to go.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
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