Top Trade Idea For December 18th, 2014 – AUDUSD
By Mircea Vasiu on Dec 18, 2014 11:18:43 GMT
Yesterday’s FOMC decision and press conference was followed by a US dollar buying mood all over the dashboard as the Fed basically gave a timing for the possible future rate hike: a couple of more meetings away.
However, if I were to pick an opposite view, I would pick audusd as a good candidate, and these are my arguments.
On the fundamental side, Stevens in Australia is talking the aud down saying that normal levels should be around 75 cents on a dollar. Yesterday Yellen was hawkish the dollar too. But markets not always move as central bankers want, as in this case it is too obvious.
Therefore, I would like to take a trade in the opposite direction, buying audusd in this daily trend line support, as the double zigzag seems to be completed and a bounce now is expected.
As targets, we should see at least the upper part of the channel to be tested again, and this gives the 0.90 area, while a move into the 0.7900 level should invalidate both this channel and this trade.
Being a daily chart, patience is needed and it might be the trade for the 1st half of 2015.
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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