Wednesday, April 25, 2012

Why I Am Keeping The AudUsd Short

If you have been following my tweeter feed, you know that on April 23, I shorted the AudUsd at 1.02899, after it broke resistance at 1.02979.  It went as far down as 1.02461 on April 24, a profit of 46.8 pips  Since then, the position is down some 51 pips.

Since April 13, the AudUsd has been experiencing a series of lower highs, as you can see by looking at the red trendline in this 4-hour chart.  I am hoping this trend will continue, so I will keep open this losing position.

If you are an Elliot-wave theorist.  You will probably notice that the 5th wave closed on April 24.  Thus, I expect some sideways movement.  Maybe a breach of the trendline, not to exceed 1.03902 for a few days.  At that point, I'll reevaluate whether to close the trade or give it some more room to play out.