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Daily Observations: May 15, 2013

Christopher Vecchio

Current Positions:

- Flat

Recently Closed Positions

- (05/13) Short AUDUSD (1/2) from 1.0150 at 0.9980 for +170-pips.

- (05/13) Long USDJPY (1/2) from net 100.07 at 102.00 for +193-pips.

- (05/14) Short AUDUSD (1/4) from 1.0150 at 0.9900 for +250-pips.

- (05/15) Short AUDUSD (1/4) from 1.0150 at 0.9860 for +290-pips

- (05/15) Long USDJPY (1/2) from net 100.07 at 102.000 for +193-pips.

- Closed Short AUDUSD for net-gain +220-pips.

- Closed Long USDJPY for net-gain +193-pips.

Typical Time Frame: 1-day to 1-week

Both the short AUDUSD and long USDJPY trades were closed out today. The AUDUSD trade matured nicely, hitting my final $0.9860 target (ascending TL off of Oct'11 and Jun'12 lows, weekly 200-SMA) and has since rebounded firmly. I'll be looking to resell a rally towards 0.9940, and price shouldn't exceed 1.0030/60 if the downtrend is to remain over the coming weeks.

The USDJPY trade, on the other hand, was cut short amid a steeper than expected pullback, but +193-pips were retained so at this point it's about timing the reentry for a continuation into 103.30. Be sure to follow my Twitter on the DailyFX RTN (links below) to get my latest and most timely trade updates.

Are you new to FX or curious about your trading IQ?

As always, any other trade ideas and general macroeconomic musings can be found in the DailyFX Real Time News feed, or by following me on Stocktwits/Twitter @CVecchioFX.

I also host a weekly Live Trading Q&A in DailyFX Plus, on Tuesdays at 07:15 EST / 12:15 GMT, in which I delve deeper into my positions and thought processes behind my analyses. [View the archive of my most recent webinar here]

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

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