USDAUD, Daily
I first posted March 23rd on the strengthening Australian dollar as commodity prices recovered from their early year nadir and the negative sentiment (for now) over China began to wane. The news flow from Australia continues to be received in a positive light and the good jobs data last week helped the pair get very close to Target 2, before finally closing above it yesterday.
This trade is a good example of the cycles within cycles that occur on the currency markets and that patience is one of the key assets of a successful trader. The trade reversed for 2 days before recovering and hitting Target 1 (0.7690 +110 pips) within the following 4 days.
The extended target at Target 2 (0.7730 +150 pips) was more interesting. The pair did not have the energy on this initial attempt at the psychological 0.7700 to hold above this level. It then reversed for another 5 days, but again finding support at another round number, this time 0.7500. The rally in the pair from April 8th posting higher highs and lower lows allowed it to finally close over 0.7700 on Friday, yesterday’s large volatility allowed Target 2 to be achieved.
Although the rally in this pair may have further to run Target 1 and Target 2 have been accomplished and this trade is now closed.
Janne Muta
Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
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