Live Trade – AUD/USD

Filed under: Live Trades |

I have unfortunately just had a losing trade on the AUD/USD forex pair, and I would like to talk you through this setup right now.

 

Figure 1.

Figure 1.

To begin with, take a look at Figure 1. This is the daily chart for the AUD/USD pair. What you can see is that the pair had been in an uptrend, with the 8-day EMA crossed above the 21-day EMA and the chart visibly moving up from left to right. I have also marked in a significant level of support/resistance on this chart (marked with a horizontal green band). So, when price retraced and hesitated at this level, I was on the lookout for any price action signals.

 

Figure 2.

Figure 2.

If you now look at Figure 2, you will see a very nicely defined pin bar that formed right at this area of support/resistance. It was here that I put an order in to go long at a 50% retracement of the pin bar, with a stop loss placed just a few pips below the low of the move, and a target of three times the risk. Unfortunately, this pair has since continued to move down and our stop loss was hit for a 1% loss on the bank.

 

The good news is that I also currently have a trade in play on the GBP/USD pair, which is nicely in profits by around 1% of the bank. Hopefully, it will be a case of one step back and two steps forwards.

 

Another thing that I would like to briefly mention here is that I placed the AUS/USD trade with two different brokers. One made a loss of -100.08, and one a loss of -97.55. The main difference is that the second broker offers slightly better spreads. Now, 2.53 might not sound like much, but if this occurred on every trade, and you made 300 trades per year, then that would amount to 759 per year, or an extra 7.59 % profit on the bank. Therefore, this is something to seriously consider.

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