The short AUD/USD position hit its target today at .8980. It was a very close call because it hit the target and bounced off from .8978. As mentioned in the position analysis (Short AUD/USD from .9049), the .8980 is currently a big congestion and support zone for the pair. In the near-term, the only thing that is likely to break the support is the U.S. Non-Farm Payrolls data Friday morning.
Click on image for full-sized graph
The pair also broke through the initial stop-loss of .9080 mentioned in the analysis. However, you can check StockTwits.com and see my twit on pushing the stop-loss 10 pips higher. It was still lucky that the stop was not triggered because the pair peaked at .9085. I usually never move stop-losses because that’s how you lose money trading; however, the market divergences (see post: Intraday Market Divergences) happening at the time the pair was reaching its high directed me to change the stop-loss.
In the end, it worked out well. I did not make the full 69 pips because I got out of the position and then back in. For some weird reason, Asian session movements (which I never take seriously) got to me to play on the safe side by closing the position before getting back in.
Now, it’s time to wait. The U.S. jobs data will be released Friday morning and is likely create lot of volatility and opportunity. Exciting.
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