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

[caption id="" align="aligncenter" width="580" caption="AUD/USD"][AUD/USD]AUD/USD[/caption] [caption id="" align="aligncenter" width="580" caption="AUD/USD"][AUD/USD]1[/caption]