SYDNEY (MarketWatch) -- The Australian dollar hit a fresh post-float high on Thursday morning, trading at 99.63 U.S. cents, as it continued its assault on parity with the greenback. The currency's advance to its highest level against the U.S. unit in 28 years has occured amid expectations for renewed quantitative easing measures from the U.S. Federal Reserve as well as possible rate hikes from the Reserve Bank of Australia. http://www.marketwatch.com/story/australian-dollar-hits-fresh-post-float-high-2010-10-13 Assault is the right expression...
anyone short the AUD.. I did hit it at 1.016 but am not making too much.. I want ti to fall back to below 1.00 any predictions where it will go ? BTW.. I have not traded much. in FOREX.. I was charged 2.5$ for my trade in Interactive brokers.. What about rollover etc. are there any other fees for holding this trade for a few days/weeks.
Are you trading the future contract or the IDEALPRO which is the spot FOREX? Is the aussie central bank about to cut rates? Is the FED about to rease rates? Are the Chinese buying tons of stuff from the Aussies? Is China selling tons of stuff to the USA? Etc... Etc.. Can you hold the position if it goes to 1.022 before going to 0.95? If you have doubts get out now and wait for a better setup. Don't let your mind picture obscure the real market. Consider buying a put. Your risk will be limited and if it turns out that it does go to 0.95 you will make a profit. But make sure the implied vol is low and that it moves before the put expires. There must be a strong correlation between the Aussie dollar and the loonie. Consider some type of pair trade that might be less risky.
$2.5 is IB's minimum commission for placing a forex order. There are no roll-over fees. You will be charged another $2.50 when you close your trade. I'm looking at a chart of the AUDUSD right now and it looks pretty strong. Which pair are you trading? I would wait for pullbacks and go long.
In late October I might have thought that AUD/USD at 2.00 was a super-crazy outlier. Now I just think that it's just an outlier, but not necessarily a super-crazy one. Do you have a link to a web site where Armstrong gives this opinion?
thanks for the insights. I am trading the AUDUSD . i am short it... and I do have patience. ha ha . a lot of it.. I will keep shorting if it goes up.. my size will be small. in the sense. I have just started FOREX trading and will not risk more than 3-5% capital in this one trade. ( I follow anthony Gallea Principles) .
that would pretty much mean a higher EUR/USD rate of 2, a 50 or so yen, gold over $2000 and other commodities somewhere around twice what they are now. oil at $150 + The system will detonate way before that.