Sunday, October 11, 2009

Looking for close below 1.5800 on pound

Just sitting here analyzing things tonight and pound is looking very heavy. I will be more comfortable when we actually get a close with conformation below 1.5800. When I say conformation what I mean is a close below this level and then getting a second candle to close below the low of the breakthrough candle. If this happens you can expect pound to fall as low as the 1.5370 level. I am not in a pound trade tonight. I am in an AUD/USD short currently. I went short the Aussie at .9025 and I am just looking for a target at the .9012 level. I am short 3 units and if price reaches this level I will take profit on 2 and set the 1 at break even. I have a stop set at .9065 so just waiting for this trade to pan out. The reason I am looking at the Aussie is because it follows gold closely. Gold had a big run up last week and I look for a pull back. If AUD/USD closes below the .9000 level with conformation then I expect it to fall to the .8950 level rather quickly. Let's see?

No comments:

Post a Comment