Following up with the short AUD/USD recommendation from the previous day, the exchange rate broke below 0.8800 ahead of the U.S. trade as investors continued to scale back their appetite for risk on Wednesday, and I was able to get in just below this level at 87.95. Currently, my position is relatively flat at the moment but, I will maintain a soft target at the 7/19 low at 0.8632, with the stop at 0.8858, the June high as I expect the head-and-shoulders pattern to play out going forward over the near-term. At the same time, I will look to tighten my stop once I'm 50 points in-the-money as the daily RSI approaches oversold territory.
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