AUD/USD’s Subdued Reaction Continued

October 28, 2016

I realise that by using the Vantage FX platform to publish my writing, that there will always be scepticism around ‘broker manipulation’ and the like.

Both myself personally and Vantage FX as a company have tried their best to be open and transparent about how they interact with clients and conduct business as a retail forex broker. Nothing here is designed to trick you or manipulate you into trading a certain way.

On yesterday’s AUD/USD blog we were looking at the following level and the opportunity that it offered to trade using tight stops:

AUD/USD Hourly:
161027_audusd_hourly
Click on chart to see a larger view.

I wanted to use this setup to highlight how important it is to take quality trades that offer excellent risk:reward off clear levels.

What I’m trying to do here on the Vantage FX Forex News Blog, is to highlight good levels that you can base your own trading decisions around, with your own risk management principles applied. Nothing here should be taken as a trade recommendation straight off the bat.

Yesterday I said that the re-test into the above level gave traders a chance to use ‘something like a 10 pip stop’ which ‘offered crazy-good risk:reward on the trend line reactivation’. I was simply spruiking the benefit of trading around key levels because of the risk:reward on offer.

AUD/USD Hourly Today:
161028_audusd_hourly3
Click on chart to see a larger view.

Looking at today’s live chart, we can see how price acted after re-activating that trend line. Price tapped the level to the pip and from then on, there was ample opportunity to be able to get into a short after this confirmation was given on an intra-day chart.

It’s now 24 hours later and price has found short term support back at the marked swing lows. If your stop was tight, the prospect of a best case scenario 6:1 risk:reward was on offer for a single day trade.

Opportunity is always there.

Enjoy your weekend!

———

On the Calendar Friday:
USD Advance GDP q/q

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Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

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