Forex Trade Ideas: Holding USDJPY Long, AUDUSD Short
I've recently trailed the stop on my USDJPY long to congestion support at 86.80 and will close my position on a daily close below.
On Friday I attempted to get short AUDUSD from $1.0450 with a stop above month-to-date highs of $1.0525. Yet the position hasn't really panned out, and there is clear risk I'll get stopped out. If I do, markets will have clearly proven the trade idea as premature. I'm discouraged by the fact that the S&P 500 Volatility Index trades near multi-year lows.
If I get stopped out of AUDUSD I may try again at a later date if and only if there is concrete evidence of reversal.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up to David’s e-mail distribution list via this link.
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