Paper trade: AUD/USD short 50% @ 0.90040, stop 0.9100

Just got stopped out of my USD/CHF long. But USD seems to be holding ok in spite of this AUD/USD surge of 100 pips, see Fig. 2. I’ve been observing AUD/USD and now seems to be a good short opportunity for the following 5 reasons.

1. Negative divergence on RSI, see Fig. 1.
2. Nice round number resistance at 0.9000
3. At top of the Fibonacci fan line
4. EUR/JPY still holding 130.00
5. USD/CHF also holding 1.0300
6. No big move in other USD pairs

A big cautionary note in this is the fact that AUD/USD is making a new high. However, based on the above 6 reasons (usually I only have 4), I’m going to give this a try.

Entry: 0.90040

Stop: 0.9100

Target: 0.8700, back to the recent up-trending top line, Fig 1.

Reward/Risk = 304 / 96 = 3.2 > 3

AUD/USD

AUD/USD

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2. Paper trade: Short NZD/USD 50% @ 0.7381, stop 0.7430
3. Paper trade: Short AUDCAD @ 0.9489, Stop 9540
4. Paper Trade: retrying AUDJPY short @ 84.52, Stop 85
5. Paper trade: Short AUD/JPY @ 84.53, Stop 85.00