At least my p&l column looks a little better today than it has done for the last few months as the pair break above my average. We carved through the tech at 0.9085/00 and falls back below 0.91 were soaked up nicely and we’re now making new highs at 0.9130.
AUD/USD daily chart 07 03 2014
The next topside levels to note are the Dec 2013 highs at 0.9167 and the 200 dma at 0.9173. Above that is the 50 fib of the Oct swing down. at 0.9207.
Like usual I’m not going to get overexcited about the moves as there is still a long way to go and a lot to possibly come out of the woodwork with the taper, Aussie fundamentals etc but we seemed to have put in a decent base with which to work from. I’d like to see these near, upper levels taken out and become support but it’s the 0.9070/85 level that is playing that role for now.
I hedge trimmed about a third of my overall position on the break below 0.87, just to give myself some wriggle room to keep scaling in lower, and can say I was overcome by a tad of fear from being so offside. The psychology of trading is a very difficult beast to tame even after all these years but I’m not going to complain as you can only deal with what’s in front of you at the time. I’m in no way, shape or form claiming victory on the trade as I’m not even close to my goals but will afford myself a little wry smile for at least seeing it change colour from red to green, for as long as it lasts
Now if we can get EUR/CHF above 1.23 I’ll be happy man.
Onwards and upwards as we say here at ForexLive