AUD/USD and AUD/JPY Trade Update - Bulls Win with Announcement of "QE Infinity"

With the announcement of the United States Federal Reserve announcing QE3 (link to bloomberg.com) with a pledge to continue asset purchases until the US economy improves, the USD has lost quite a bit of value in the course of a single trading day. My estimate, looking at my quote sheet is about 1 - 1.5 cents against everything so far.

I have a couple of trades on AUD/USD and AUD/JPY, long on both, prior to the FOMC meeting and press conferences, doing fairly well on average. After the announcement, it was quite a fight but both pairs have put in some impressive highs for the week, and the corrections (thus far) seem to be muted.

I am currently waiting on both of these positions to see if they have the potential to reach my first targets of 1.06 on AUD/USD and 82.00 on AUD/JPY, though I may have to wait to see what the Asian Session brings.

AUD Looking Poised for Another Climb

AUD/USD and AUD/JPY both look poised for additional gains, based on my study of these charts. I'm looking at the 15 minute on both.

I'm already long on both, as both carry trades and with profit targets of 1.06/07 on AUD/USD and 82.00/83.00 on AUD/JPY. Thursday and Friday should be interesting to see how they play out.

The Breakout Trade

Although my main strategy is the ranging strategy, i.e. buy when the price is at the range lows, or sell when the price is at the highs, occasionally this strategy can turn a trade with the potential of 20-50 pips into a an even better gain when the price breaks out of a range. This is off of a 15 minute chart for EUR/USD where I went long on Eur 126.91 in the hopes that it would bounce up from the session low to the 127.40 previous high. I was in this one for about 2 hours and even refused to take a profit of 30 pips when it went in my direction the first time and even saw it go back down to 126.79 (-19 pips against me), but a bit of patience paid off as it pulled up, moved past 127.00 and then sailed past 127.40 to go all the way to 128.24. I set my stop at 115 pips (out of 130), on the chance that it would break past the 128.20 resistance zone (which would be a true breakout on the hourly chart) but it didn't and retreated back below 28.00 once the market took my stop at 128.06. Not bad for 3 hours of work. As always, when I conclude a trade like this, I log out, and take the rest of the day off, lest I be tempted to put my profit on the line while I'm a bit giddy with success. Nice to end the work day at the time I would go for my first coffee break in my previous job. Mmm...coffee.