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.
- Negative divergence on RSI, see Fig. 1.
- Nice round number resistance at 0.9000
- At top of the Fibonacci fan line
- EUR/JPY still holding 130.00
- USD/CHF also holding 1.0300
- 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