Sails Up

↑ £/AUD

Swap dealers are stretched short the AUD.  Great CCI divergence on the daily chart & good on the weekly.  Resistance at 1.62, however wide stop due to Thursday’s GBP economic calendar release.

Update:  order triggered at 1.6210

Position closed, 9/8/2017:  closed at 1.635 due to 15 days of market choppiness, no significant change in retail positioning and the triggering of a correlated €/£ short;  gain on trade +11.8% of required margin.

I will re-evaluate this pair before upcoming BoE meeting.

Update:  £ accelerated a few days after I closed out, I bought on the pullback to 1.65 and held until the RBA assist gov. speech; gain on trade +24.4% of margin.

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Author: Alexander Zhang's Blog

The ocean is my home, although I don't miss living on a ship! Risk Manager & Author from San Francisco.