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AUD/USD Trading 06-10 Jan 2014 live with Matthew Taylor

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This week's strategy is on the AUD/USD. Looking for retail sales from Australia on Thursday and Unemployment from the US on Friday. Consolidation before we pick a clean direction - bias is to the downside for now.
AUDUSD_06012014

Comments

Matt T.'s picture

Our forecast is up for a tough test tonight - we did manage to get on board with a trade, but we are very close to our entry level for now. As we mentioned yesterday our goal was to buy puts for today's close just south of 0.8930. So we did, and today at some point in time we were already deep in the money when prices have dropped below 0.8900. The bottom we hit today is now acting as support, while a rebound towards 0.8935 might prove to be a pivot point. We maintain our view that for now the downside is more likely and will keep you posted.AUD/USD Chart 07 Jan 2014

Matt T.
Matt T.'s picture

We managed to register a profitable trade on our daily option yesterday and are currently contemplating our next move. The pair has been rising steadily during the course of the day and for now we are neutral. More aggressive players have probably taken a chance on the break above the pivot point that we mentioned yesterday around 0.8935. We will remain sidelined for now and wait 0.8960 to buy hourly put options for tomorrow. However should the price close on an hourly basis above 0.8965 we would go back to the sidelines.AUD/USD Chart 08 Jan 2014

Matt T.
Matt T.'s picture

As the most important piece of data for this week is out of the way and US Dollar bulls take a big hit with dismal employment figures from the month of December the Australian dollar is poised to take off next week. Our strategy session for this week ends with our opinion to buy call options on current levels with expiration at the end of next week. We think it is a relatively safe trade at the current 0.8933 price. Non-farm jobs created in the month of December were way lower than the 195,000 expected with the number hitting the wires at 74,000, which is the weakest number for 2013.Image

Matt T.
Anthony Stanley's picture

I want to know more about it. It is very interesting.

Anthony Stanley