AUDUSD trade analysis July 26

July Trade Review: AUD/USD (+92 pips)

Entered AUD/USD at 1.0950 on 26 July. Exited July 26 at 1.1042. Result: +92 pips

AUDUSD trade analysis July 26
AUD/USD 30 minute, July 26

Entered with no stop. Greatest open loss: 15 pips Greatest open gain: 110 pips

Sometimes a trade that is bought minutes or hours ahead of data looks whimsical but when it’s good, it’s often because it was set-up long beforehand.

I entered this trade because I became bullish Australian dollar after the RBA minutes on July 18 (my analysis here).

I became further convinced AUD/USD was going higher due to the breakout of the triple-top at 1.0789 on July 21.

AUDUSD tweet 21 Jul
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I was waiting for a pullback but I knew that I wanted to be long into the decision. At the same time, it was risky to be holding USD positions because of debt ceiling talks and volatility in markets so I minimized those risks by buying hours before the decision on the bottom end of the recent range.

“We’re sure that the record of 1.1012 will fall,” we wrote.

What I should have known better: If I would have thought harder and prepared better, I would have realized what the break above resistance at 1.0789 was forecasting and been ready to buy on the pullback to 1.0800. I also left some pips on the table by covering perhaps too quickly. Eco data is always somewhat unpredictable, so I should have used a stop, even though I was watching the decision.

What I’m happy about: The fundamentals and technicals aligned and I jumped at the opportunity. What’s better than that?

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