AUDUSD Sells Off Heavy From Key Resistance | Feb 12th

AUDUSD – Gets Hammered Post Employment Numbers
After giving a brief kiss to the key resistance are we mentioned in our Feb. 5th commentary, the Aussie got hammered just after posting some absolutely dismal employment numbers 30 mins ago. The pair is now down almost 100 pips since the print. I seriously doubt intra-day traders will want to buy this pair short term, and bulls long from the swing lows around the mid-86/87 range likely took profit and are unwinding most of their longs.

Any corrective pullbacks towards the intra-day key resistance area between 8980 – 9006 could be good opportunities to sell. Downside targets would be 8940 and 8878 offering at least a 2R play on the first target, and ~4.5R on the second. A daily close above 9060 will likely bring in fresh buyers, so that will be the ‘line in the sand’ for the upside.

audusd price action intra-day resistance impulsive selling 2ndskiesforex

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  • Max Ahartz

    Hi Chris,

    I have noticed recently this year that your price targets have really slimmed down as late. For example, this trade, TP expectation was recommended at 50-60 pips. Is this the new normal for this year? I mean, should we be adjusting our pips/trade targets downward? I have been used to plays that target 200 pips + from you, figuring targeting any less was not worth bothering with. I understand even these sub-100 pip trades comply with great RR. My intentions are not to criticize but to understand where you are coming from. Thank you as always for sharing your methods.

    • Chris Capre

      Hello Max,

      Depends upon the setups. My gold trade had a target of well into the 4000 pips and is currently up +4800. The Nikkei trade had a target of +800 pips. USDCAD was 120-150.

      Trying to mix it up between having people wait for days, and finding this which play out quicker.

      Now as to your question ‘should we be adjusting our targets?’, that is something we always have to relate to because volatility and liquidity change. We are at multi-year lows in terms of daily ranges and volatility, so obviously we’d target smaller TPs. The GBPJPY doesn’t have the same daily range it did years ago. Neither does the EU, or GU, or many others.

      But in reality, the number of pips by itself is meaningless. I could make 1000 pips, and still generate the same profit as a trade I make 50 pips on. Why? Risk/Reward, Total R gained and position sizing.

      Hopefully that clarifies things a bit.

      Kind Regards,
      Chris Capre