Equities dropped pretty significantly by the end of the day yesterday, and futures were pointing to a weak day today. They also dropped right at the top of the range they’ve been in for some time. Looked to be shaping up to be a great risk-off day, just needed to find the opportunity.
GBP had dropped, tested the resistance level that was the support level of the previous base, dropped from that again, but by this morning, had rallied back above that level and looked strong (and when I watched the update from last night, the prop firm also had a +1 rating on GBP).
AUD was the weakest currency of the day, and was stuck at some support, but it had already pushed through one level. This had been choppy in the past, so I knew there was potentially too much support/resistance for my appetite, but I wanted to check it out since it was so weak.
When I looked at the GBP/AUD chart, it was right up against resistance and looked ready to break out. There wasn’t much resistance above that level, so it looked great to me, and when I ran the numbers it was an 2+ R:R, so I set entry/stop orders.
Entry – 1.81705
I set my entry orders prior to the market opening, and when it did, price pushed up and triggered me into the trade.
| Entry Order Level |
|---|
| 1.81705 |
| Stop Loss Level |
| 1.8107 |
| Target Level |
| 1.8295 |
Exit – 1.81695
There was a level of resistance before 1R that made me a bit nervous, and price reached that level roughly the same time the SAR on the 15 min. chart crossed above my entry. Since it was seemingly stalling at that level, I moved my stop to the SAR, at break even (essentially). Shortly after, price slowly reversed, and came back enough to stop me out for a basically break-even trade. I’ll take this over a loss all day.
