News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Reasons Why I Remain Short Australian Dollar

Reasons Why I Remain Short Australian Dollar

David Rodriguez, Head of Product

I went short Australian Dollar two weeks ago, added to the position last week, but I'm looking to take partial profits right now.

As I detailed on the Real Time News Feed last week, my initial entry was at the $1.0487 with a stop above $1.0550. I remain in that position as I look for the pair to test significant support at $1.0180.

Since then, I added to the position after Fed Chairman Ben Bernanke's address at Jackson Hole pushed the Dollar lower. I sold from $1.0330 with a stop above $1.0400.

Ultimately I'm paying a lot of attention to the fact that recent CFTC Commitment of Traders data shows Non-Commercial futures traders at their most net-long AUDUSD since the pair hit record-highs in 2011.

More recent CFTC data shows that AUDUSD longs have pulled back, and I fully expect this to be the start of a larger move lower.

That said, I will take partial profits on the position, closing a third of the open short and trailing my stop to the psychologically significant $1.0400 mark.

I'll close part of the position at current market price of $1.0225 and put a sell-limit order at today's high of $1.0285.

Contact and Follow David via Twitter: http://www.Twitter.com/DRodriguezFX

Receive David's report via Facebook:http://www.Facebook.com/DRodriguezFX

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES