\Shorting AUD/USD at the Top of the Channel - Locked in Some Profits! Posted 08:57 08 December 2011 | 14 Trade Update: 2011-12-08 8:56

Time to lock in some pips! Looks like it's going to take more than a couple of disappointing economic reports from Australia to rain on the Aussie bulls' parade! A few hours ago we saw AUD/USD plunge below 1.0250 when Australia released its employment reports. Not only did the country's unemployment rate rise to rise to 5.3%, the number of employed actually decreased by 6,300 in November! Unfortunately for my trade, the bearish report wasn't enough to firmly place AUD/USD below the 1.0250 mid-range support. The pair bounced off the minor psychological handle, and even went back to near my original entry area a few times! Since 1.0250 was holding like a boss, I decided to tweak my trade plan. I closed my first position at the 1.0250 support when it w

as retested a couple of heartbeats ago, and then I moved the stop of my second position to break even. What do you think of my new plan? Should I have closed my second position early, or should I wait for the pair to break 1.0250? As always, your thoughts are much appreciated! @Happy_pip Twitter Playing with Comdolls Facebook page Happy Pip Comdoll Corners MeetPips.com Just keep pippin'! Just keep pippin'! Trade Idea: 2011-12-07 00:57 Ho hum, it looks like most pairs are consolidating lately and I just can't resist this opportunity to play the AUD/USD range. As Big Pippin pointed out in today's chart art, the pair has been stuck between support at 1.0150 and resistance at 1.0300. Stochastic is already lingering at the overbought zone, suggesting that Aussie bears are ready to pounce. But, until the oscillator crosses downwards, the bulls could still take the pair up to the top of its current range. You might be wondering why I have a bearish bias on the Aussie. Well, wonder no more! You see, the RBA just cut rates by 0.25% this week, bringing their benchmark rate from 4.50% to 4.25%. If you've been keeping track of the RBA rate decisions, you'd know that this was their second rate cut this year, as the central bank continued to worry about persistent global economic threats. Besides, there's still a lot of uncertainty in the markets as traders await the outcome of the EU Summit on Thursday. With that, the markets would probably be in for a lot of sideways movement until then unless we see any huge shifts in market sentiment. Here's my trade idea: Short AUD/USD at 1.0300 SL at 1.0340, PT1 at 1.0200, PT2 to be determined I'll be risking 0.75% of my account on this trade and I'll be moving my stop on the rest of my position to breakeven once my first target gets hit. I'll keep the remaining half open and cross my fingers that this pair goes all the way down to parity or lower. Hey, those gaps still need to get filled! What do you think of my trade idea? Will I catch another win with AUD/USD? I'd love to hear your thoughts so send 'em through any of these accounts: @Happy_pip Twitter Playing with Comdolls Facebook page Happy Pip Comdoll Corners MeetPips.com Chips, dips, and give Happy Pip those pips! Currently 4.5/512345 Rating: 4.5/5 (11 votes cast) Related Posts: Shorting USD/CAD at the Top of the Channel - Avoided a heartbreak! 03:08 22 November 2011 USD/CAD: Trading the Intraweek Range - Trade Update 06:12 25 October 2011 Time to Short the Kiwi Again? - Closed All Orders 06:29 06 December 2011 USD/CAD: Will Parity Hold Again? - Trade Update 08:54 28 September 2011 Comdoll Weekly Replay (October 3-7, 2011): 710-pip AUD/USD Setup! 07:09 10 October 2011 Read more: http://www.babypips.com/blogs/playing-with-comdolls/shorting-audusd-at-the-top-of-the-channel.html#ixzz1fxWVImzU