AUDUSD - short with GAP serving as resistance

Feb 4, 2016

After the nice winner on a long on this pair, I'm now trading a short on the 3 drives pattern that was established and with the weekend gap serving as resistance on the upside.

I am looking for a retracement into previous highs as a primary target and the 61.8 fibonacci retracement as a secondary target.

The stop loss is defined by a 1:1 R:R for the primary target and the reasoning that when the weekend gap is closed the trade is invalid as this is one of the reasons for entry.

Feb 4, 2016

Trade active

Feb 4, 2016

Note

For those who are in this trade, be aware that the RBA monetary statement is up for tonight and that tomorrow we have the NFP coming up. Protect your capital !

Feb 4, 2016

Note

Moved SL to break even in anticipation of the RBA Monetary Policy Meeting ...

Feb 5, 2016

Note

RBA Monetary Policy Meeting did not cause any damage so the trade is still open with stops at break even. I will keep it that way.
If targets are not reached before the NFP, I will close this trade before the news is released and take whatever pips the market has given me up to that moment.

Feb 5, 2016

Note

Being in the live room I forgot to close the trade, luckily the market hardly reacted so I will keep the trade open and go look for those targets.

Feb 5, 2016

Note

Target 1 reached, stops were already at break even

Feb 5, 2016

Trade closed: target reached

Ka-Ching, another 130 pips booked to the account. AUDUSD has been very nice to me in the last 2 day ... looking for the next setup now.