I really like the risk-reward on being long of this pair. The technical set-up looks promising (double-bottom just above a major Fibo), the positioning set-up looks favourable (AUD shorts at significant levels), and the up-coming Australian election makes it highly likely that we will see short-covering kick in sooner rather than later.

But as always on a Friday, there is the nagging doubt about being long a typical ‘risk’ pair heading into the weekend. However unlikely it might seem, there is always the possibility of an opening gap lower on Monday when risk management is out of my control. That’s never a good position to be in. If in doubt, I always reduce ahead of the weekend.  Even if I have to buy back in 30/50 pips higher, it’s worth it just to keep control of my position. With a bit of luck we will see some sort of a rally over the next 12/15 hours which will allow me to book some healthier profits.