My trade for this week is AUDUSD .
– We are expecting AUD weakness this week
– We are expecting continuing short term USD bulls
– This pair broke from ABC ascending correction on 4H timeframe, rejecting from a strong daily and weekly .
– We have since seen consolidative channel on 4H timeframe (marked on chart)
– We are expecting news for both USD and AUD tomorrow, 13th September, namely:
1.) 0400 GMT AUD SEP (Consumer inflations expectations). Currently, at 3.3%, a drop would be good for AUD, and a rise would be bad. Given that they are in National lockdowns, the suspicion is that the Actual will be slightly higher, ergo AUD shorts.
2.) 2100 GMT USD Monthly budget statement. This was previously -$302B, and is forecast to be in the region of -$170B. In simple terms, a larger deficit is bad for the dollar, and a smaller one or a surplus is better. We want the actual value to be close to or closer to zero than -$170B for USD strength. Expect to see USD pair correct prior to the news, so my advice is to set SL to BE a few hours beforehand, and see what happens. IF it is bad for USD, it is likely we can re-enter at option 2 (on the chart).
These are very tight stop-loss trades, to minimize the risk to us. Do not go chasing the market, you will just throw your money away. If it doesn’t work out, that’s fine – always other entries.
I suggest getting a sell stop order in as soon as possible as I think we will see a drop very soon.
Good luck, trade safe, and please don’t forget to like, comment, subscribe, and share! This analysis takes a lot of time, and I am providing it for free. The support really really helps.