Forex Strategy: Short EUR/GBP, Long AUD/USD Still Active
I entered long AUDUSD as technical positioning suggested the markets were ready to begin moving toward realizing my fundamental outlook. The trade remains in play and I continue to target an initial objective at 0.9640. A stop-loss will be triggered on a close below 0.8847.
Separately, I put on a short EURGBP position as a key trend line break appeared to mark resumption of the structural down trend in play since December 2008. That trade remains active as well as prices test the initial objective at 0.8408 and a close below that level will prompt a revision of the target to 0.8282. The stop-loss has been trailed to activate on a close above 0.8651.
Want to learn how to invest in big-picture macro FX market trends? Take a look at this video on currency baskets.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.