Forex Strategy: AUD/USD, EUR/GBP Trades Make Headway
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. The trade has now met its initial target with a weekly close below 0.8408 and I have revised my objective to 0.8282. The stop-loss has been trailed to 0.8533, the breakeven level.
Separately, 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.
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.