On the day of the U.S. election the AUD managed to close at its highest level since April. It sold off sharply yesterday and today again it could not climb higher.
A reversal setup is found and an entry short is taken. Price moved down predictably testing the Asian high, before descending through the Asian low tagging our target – where we exited on the retest at .7629 in advance of the U.S. unemployment release.
The market can finally move its focus away from the U.S. election. A December rate hike expectation is now back on traders’ minds. The elections next year in Europe continue to make the Euro vulnerable to the downside, but before any elections we have the Italian referendum.
It’s Remembrance Day tomorrow in North America.
Good luck with your trading!