Daily Observations: May 10, 2013
- Short AUDUSD from 1.0150, Stop at 1.0030(+120-pips locked-in), Target 1 at 1.0105 HIT (+50-pips), Target 2 at 0.9980 HIT (+170-pips), Target 3 at 0.9900 (+250-pips), Target 4 at 0.9860 (+290-pips) [final reward:risk 1.61]
- Long USDJPY from net 100.07, Stop at 101.10 (+103-pips locked-in), Target 1 at 100.65 HIT (+58-pips), Target 2 at 102.00 (+193-pips), Target 3 at 103.20 (+313-pips) [final reward:risk 2.32]
Typical Time Frame: 1-day to 1-week
The US Dollar is outperforming across the board today, truly a move that began yesterday afternoon and pushed my trades from pending to active. I'm trailing my stops on both the short AUDUSD and long USDJPY positions, watching the hourly 8-EMA as a guide (has been resistance in AUDUSD and support in USDJPY since the breakdown/out yesterday).
At this point, with +120-pips locked-in on AUDUSD and +103-pips locked-in on USDJPY, it's all about risk management at this point. I've added a target for USDJPY at 103.20, as I think this run up could extend into next week. I still plan on taking some profit at 102.00 as it remains channel resistance.
I also host a weekly Live Trading Q&A in DailyFX Plus, on Tuesdays at 07:15 EST / 12:15 GMT, in which I delve deeper into my positions and thought processes behind my analyses.
--- Written by Christopher Vecchio, Currency Analyst
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