The AUDUSD set up for a long today with a slightly softer USD and gold moving up. Risking 6 pips for a potential 32 pips to our daily target at .7274 we entered long after a “W” pattern reversal and bounce off a simple trendline. Price moved up in advance of the U.S. Open and we removed the risk from the trade in advance of the pending U.S. economic releases. We then continued to lock in profit as price moved higher. The trade was closed at our daily target.
The Fed’s rate hike cycle looks like it could be coming to an end in 2019, thereby no longer constituting an argument for a stronger USD. Weak U.S. data will put increasing pressure on the greenback. The stock markets as leading indicators have already shown concern for future global growth.
The back and forth optimism/pessimism regarding an amicable Brexit continues to weigh heavily on the GBP keeping many traders cautiously away from it.
Tomorrow is a holiday in the U.S. and Friday will be light trading as many Americans enjoy a long weekend. Happy Thanksgiving!
Good luck with your trading!
