The Australian Dollar is a strong dollar at this time and the economy is doing well compared to the U.S. Dollar. However there is going to be a temporary pullback in the Aud/Usd because the pair has been so bullish and it is due for a pull back.
Earlier in the month I made a monthly trade call and so far that has been a bad call. You can read the monthly Aud/Usd trade call here. Michael Storm wrote about learning from losses so I am going to follow his advice and evaluate my bad trade.
So the big mistake I made in making that trade was:
- first the monthly bar was red and down, but the daily chart was up
- Next I made a short long term trade and the rollover was against me so capital was taken out of my account everyday.
So I should have waited for an entry signal on the daily chart before going short. I ended up closing that trade for a large loss you can see the result of that.
Now we have a double top on the 4hr chart and an entry sell signal on the daily chart. So am going to go short again we have a large run up on the daily chart right now and I think despite the good Australian economy we will see a pull back.
4hr Chart * Note click on the chart to learn about our premium trading service.
You can see the bad entry and the new entry I am going to take now on the daily chart below. You can also see how far up we are on the daily chart. This current resistance level of the .9330 area has been tested several times.
Overall I still think this pair is going to be bullish but I see a short term correction in the future.
Read another Aud/Usd post from my friend Yohay here.
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