In their respective baskets, USD was skyrocketing and AUD was essentially doing the same, but to the downside. I knew I wanted to take USD long, but was having trouble with AUD because it was essentially at all-time lows and there was no telling how far it could drop. I looked a few different pairs, but I kept finding myself come back to this pair. It looked really weak, and had formed a nice low-base on the hourly chart.
I went back to 2002, which is where I found a low lower than where price currently was, and found a nice support area that acted as a target. R:R was over 3 at that level, so I knew even part of that would be a great trade, so I set my entry orders.
Entry – 0.59768
Shortly after setting my entry order, price moved in my favor, triggering me into the trade.
| Entry Order Level |
|---|
| 0.59768 |
| Stop Loss Level |
| 0.60435 |
| Target Level |
| 0.57306 |
Exit – 0.57986
Not long after triggering my entry, price stayed around my entry level for most of the day — even reversing within 15 pips of my stop. I was comfortable with my trade and my risk, though, so I just let it go (I monitored throughout the day, but I didn’t move or change anything). Eventually, I went to bed with price still right around my entry point.
When I woke up the next morning, though, I immediately checked the chart, and I saw that price had moved just past 1R, so I was able to move my stop to break/even. i continued to monitor the trade throughout the day — moving the stop along the SAR on the hourly chart until it reached my target, at which point, I began following the SAR on the 15 min. chart. Of course, eventually price reversed enough to hit that stop level and when it did, it was for a 178 pip profit!
