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Trade Setup For The Day: Short AUD/USD (February 14, 2013)

AUD/USD is on a falling channel on the 4-hour time frame and is currently testing the top of the range around 1.0350. This is in line with a Fibonacci retracement level and is a minor psychological resistance. With no reports due from Australia for the rest of the week, the downtrend could resume as fundamentals in the country remain poor.

A short trade around 1.0350 or a few pips lower with a tight stop above the channel and a target at 1.0250 would offer a good reward to risk ratio.

By Kate Curtis from Trader's Way