Yesterday I was talking about RBA's intervention that created the premises for a bearish trend in the near future. Until now the currency has confirmed this outlook and is giving clear signals for opening short positions.
Yesterday I was advocating going short around 1.0000 with a stop-loss around 1.0150 and those who managed to open this position should be pleased now, since the currency is below 0.9980.
I maintain my bearish outlook for the next days, but those who want to open any position today, keep a close eye on the Feds Rate Decision event. I strongly suggest not to enter the market today unless there are obvious signals. Because of the FOCM event the trade might get choppy.
Wednesday, November 3, 2010