Hello All,

I wanted to email this Live Forex Trade Setup, track it and tell me what you think.

Forex Day Trade Setup - Live Room Alert

IMPORTANT:  ON 10-09-2013 WE TOOK PROFITS AT 9403, SINCE WE DID NOT CLEAR THE 9400 LEVEL, ON THE AUSSIE NEWS, PLEASE VIEW OUR MT4I.COM ACCOUNT TO SEE.

Taken 10-09-2013 In the U.S. Live Trading Room
Short AUD/USD .9443 (Entry)
Stop 9577
Target 9307   (PROFIT TAKE EARLY AT 9401....10/09/2013 9:15PM EST)

Above is a delayed alert that was taken in our room at 11:00am EST this morning. This Forex Day Trade Setup involves some criteria that I will explain below. First I want to begin with the fundamentals.

Fundamentals Of This Trade Setup

From our discussions this week in the Live Room we have spoken of the AUD being strong. The AUD/USD has been trading  upwards since the start of the week. The pair did see a move lower after the World Bank cut China 2013 growth outlook to 7.5% from 8.3%, the cross touched its session lows. AUD/USD ran out of momentum after the World Bank cut China’s growth outlook. At the moment the AUD/USD continues to set up an uptrend momentum, despite the globally risk-off sentiment amidst the continuing uncertainty in US debt ceiling as well as on the US government shutdown issues. It seems that the “Aussie” is currently ignoring the global risk off theme.

Analyst  James Glynn, writer from the Wall Street Journal mentioned, "several recent indicators are spurring hope that the slowdown is ending." , Glynn argued "Australia’s manufacturing sector expanded for the first time in more than two years in September, while house prices rose strongly in August and retail sales beat expectations. With all this said I want to put news aside for a moment and and focus on the Momentum. Yes, we have seen this pair as strong this week. The move lower in Gold as well as just about all metals has not effected this pair much.

Forex Day Trade Setup Technicals

I have spotted something that I feel was worthy of an email to members of our emailing list. It appears we may have a chart setting up for a bearish move lower. The Bearish divergence is big and if we move we should go fast.  Let's say we begin to move higher, then I feel you can also have a short squeeze as traders are watching this .9500 area close.

Summary of Things I like about this  Trade Setup:
1.) Bearish Divergence
2.) Stochastics are turning
3.) Gold very weak
4.) Stock market has been weak
5.) China news has been a drag recently.

As you can see below my target is at the bottom of the daily range, however we go go much lower we will see.

Things I do not like on this Forex Day Trade Setup:
1.) The Price action has not crossed below my moving averages.
2.) Recent news is risk on bullish, (Janet Yellen) however I feel the lower Gold and Washington issues will trump.

As you can see the downside wins for now, we will see what happens.

Regards

Gerard (BT)