AUDUSD – Got caught by the Stop Hunters

1st Feb 2013 AUDUSD


This is what Friday’s trade looked like. You can see that a support was formed at around 10400 and I went long after the second bounce of the support level. Although the price action was still in a downtrend, I felt that we had a good chance of a good move up from this level and hence the long trade. However, I got stopped out as the price action pushed down below support taking out the stop and then finished above the stop again. This to me looks like a push to trigger the stops by the stop hunters.. it’s quite possible that the market now will go up which is of course annoying if it does do this.

We lost 70 pips because of this! Oh well, lets see how we do next week.

The other thing on my mind was that it was NFP (Non Farm Payroll) day so I did expect volatility.

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Category: Forex trading, Trading