The AUD made a larger Asian session range than usual yesterday and continues to weaken against the USD. After putting in a series of lower highs it chopped its way down during the UK session attempting to close below yesterday’s low and the Asian session low, but lacked any real momentum until the US session news.
When you can, eliminate your risk by placing your stop better than breakeven, it removes the stress from trading. If the worst case scenario is you make a couple of pips, but are bored silly…at least you’re getting paid. With major news around the corner, always protect yourself. If you are in profit, protect some of it and be prepared for volatility. Some traders choose to take any profits, close their trades and avoid the chop. There is nothing wrong with that. When the US economic news releases began, price almost stopped us out for plus 2 pips, but pushed down in our favour and hit both our targets, where we closed the trade.
We don’t trade on Mondays, so we are happy with the first day back of our trading week.
Back tomorrow.
Good luck with your trades!
