I’ve been running a short strategy in AUD/USD for some time now but I must say I’m starting to get more than a little worried about the overall direction of this trade. Despite all the reportedly heavy sell orders near 1.0500, the very poor economic data of recent times, and a rate cut today, we are still trading at 1.0440 and having trouble dipping. What happens if the news turns good and the market gets really bullish? Will we be trading at 1.15 in January?
I will not be hanging around to find out and if this pair trades cleanly above its weekly bearish trendline (currently near 1.0530 according to my best line-drawing efforts) then I for one will be bailing out