#AUDUSD Update and Trade Idea *Closed 3 Lots for 110.5 pips*
Since the Brexit low on June 24th the #AUDUSD has made a series of higher highs and higher lows and it is the only pair that I follow that has actually broken the Brexit highs. Over the last few weeks these highs and lows have created a nice rising wedge pattern. I wont call this an Ending Diagonal because there is no divergence on the RSI. Over the next few days I do hope to see plenty of divergence as the pair continues higher within this rising wedge.
A break of .75221 would break the series of higher lows and could be the start of the move to .6000. I currently have a sell order in at .75788 with a stop at .7659. I do not expect this to be triggered until the pair makes new highs making .75778 the recent higher low that will needs to be broken. If it does get hit I am fine with that and will look to ride it to .6000.
With a loss on the last #AUDUSD short the balance in the demo account is $1963.08. I will risk 2% on this trade with an 82 pip stop or $39.26. The Position Size Calculator says I should take 4.79 lots on this trade so I rounded it up to 5. The dollar risk will be a littler higher the the $39.26 at $41.00.
If the pair does make a few more small higher high and higher lows then I will be moving the entry order up accordingly,