June Trade # 9 - BUY AUD/USD

June 5, 2009 5:30 pm (Manila)

2nd lot got stopped-out at breakeven. The Aussie took a nose-dive when it encountered resistance at the upper bollinger band on the hourly chart. Great trade nonetheless.

Summary:

1st Lot: +30 pips
2nd Lot: 0 pips
Total: +30 pips

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June 5, 2009 4:00 pm (Manila)

After walking sideways over the last six and a half hours, the pair finally broke through into positive zone and hit limit 1 at +30 pips.

Stop for second lot has been moved to breakeven to make the trade risk-free.

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June 5, 2009 9:30 am (Manila)

BUY AUD/USD @ 0.8034
STOP - 0.7964
Limit 1- 0.8064
Limit 2 - 0.8120

At 7:50 am (Manila) this morning, Australian Construction Index rose sharply surprising the market. I believe that this, along with the fact the the RBA (Reserve Bank of Australia) kept interest rates unchanged at 3%, will sthrengthen the Aussie even further and send this pair up.

Confidence in the construction industry is a leading indicator of economic health. Generally, when construction companies feel good about business conditions, they anticipate better construction orders to come in. It will then ripple into spending (both the company and suppliers) which will help boost GDP.

On the technical side, the pair bounced on the daily chart. RSI, MACD and Slow Stochastics also show signs of room for an upward movement.