Recap: Our short was triggered on the support break a few hours ago at 1.2910. That short is still open and is hovering around 1.2905 (5 pips in the profit). We are going to let that short ride for now.
The pair is consolidating into a wedge pattern between the top blue falling resistance and the bottom blue rising support on today’s chart. The support has more history behind it as it is an intra-month support that has been tested (and held) several times. The pair has bounced off this rising support yesterday.
We are letting the charts guide us on this one: we are short-term bullish if the falling resistance is broken and bearish if our support is broken.
Today’s Important News Events:
|04:30||AUD Reserve Bank of Australia Rate Decision (OCT 2)||3.50%||3.50%|
|09:00||EUR Euro-Zone Producer Price Index (YoY) (AUG)||2.6%||1.8%|
|*To see a more extensive list of news events (not just those we consider important), visit our forex calendar.|
Trading Idea: We are leaving our short from 1.2910 open with targets at 1.2830 (80 pips). Our SL is still at 1.2960 but we will close and get long if a resistance break occurs (which will most likely occur before the SL is hit if price moves against us!). If we do get whipped out to the topside we will look to re-enter short on a support break with targets at 80 pips.
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