The market is moving in both directions based on optimism or pessimism on any given day. This makes it hard to have conviction unless an important level holds or is taken out.
The rally in the AUDUSD was unable to take out yesterday’s high and began to move lower to test .6655 – a critical level from the daily chart. A short was taken risking 16 pips for a potential 60 pips to our daily target at .6604.
Price moved lower through the .6655 level and continued down to test its Asian session lows. As the U.S. session got underway price descended to our daily target where we exited the trade.
Although we may have left pips on the table, it was a successful trade and a reasonable place to exit based upon our target formula, the .6600 figure looming and month end.
Good luck with your trading and safely enjoy the relaxing of the lockdowns!
