AUDUSD #2 Forex Breakout

03/07/14 – Another XTL Forex Breakout SHORT trade, similar to my recent EURUSD trade.  Again on a 60 minute time frame with the first Red XTL bar shorter or average in length to the preceding 20 bars.  This time I was looking for a setup across all the Major Forex Pairs before the Non Farms Payroll announcement on an XTL Forex Breakout Strategy.  In particular I was looking to Short a pair against the USD as all indications were that the announcement would be positive for the USD.  The only potential trade fitting my criteria for an XTL Forex Breakout was this AUDUSD trade on a 60 minute chart.  This is from the 8 major pairs and on Daily, 240 minute, 60 minute, 13 minute and 5 minutes charts.  So as you can see quite hard to find before an announcement like this, but well worth the effort.  A strategy I will look to increase over more and differing announcements from now on.  A great article on the My Trading Buddy blog was posted prior to the announcement which is worth looking at to understand my train of thought regarding the direction of the pairs against the USD, follow this link to read HERE .

The Entry point, as shown on the chart, was @ 0.9368 and triggered at 8am GMT which was quite a few hours before the Non Farm Payrolls announcement and then immediately pulled back and became range bound.  My take profit Limit Order was set at 0.9332, expecting a movement of at least 36 pips during the announcement. This was also at my minimum Risk to Reward Ratio of 1:1.6 and an acceptable target in the context of a 36 pip move.

As soon as the announcement was made at 13.30 GMT the price shot down and this XTL Forex Breakout trade was closed at the Take Profit Limit order, giving me a profit on my trading account balance of 1.6%. As Below

forex breakout


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