Trade of the Week - long AUD/USD

(Video Transcript)

Trade of the Week

Welcome to IG's Trade of the Week for the week, beginning Monday the 24th of July. Each week we look at a market that's moving and a potential trade around that market.

Short copper

But first, let's look back to last week's trade, uh, of the week when igs, uh, senior Mark Alice, Axel Rudolph looked at going short copper. Uh, which has seen a period of weakness, uh, following some mixed, uh,

Chinese data. Uh, axle trade was to go short copper around the 85 90 level, uh, with a stop up at 87, uh, 20, uh, when he recorded the trade, the copper was trading, uh, down here.

At around about 84 60, and he said if you waited for a rebound towards 85 90, uh, then that'll be a more attractive place to enter the trade, which duly happened during the course of the week.

Uh, and you saw the price rally into Thursday's session and then drop again. So this trade is still working out for the time being, uh, it's well within. Um, It's uh, uh, moved to the downside and we could see it move further.

Certainly you could now look perhaps at moving your stop lower, um, looking to maybe either locking gains or move it to break even, although perhaps there's some more downside potentially to come here. Um, so that is one to watch as we continue, uh, into a big e big week for global markets and could see further losses for copper. Turning to this week, we're looking at back at FX markets, and for this one we're going long

Aussie dollar. Which has seen, um, an impressive recovery from the lows, um, of May down at 64 60, driven by that weakening, uh, US dollar, but plenty of volatility on the way. So we do have to trade this one, uh, somewhat carefully. Nonetheless, you have seen the price, uh, start to recover.

After a bit of a pullback from the highs, um, we saw just below the 69 cents level, so the pullback to the 200 day, uh, moving average. Uh, we could like to go long Aussie dollar, uh, with a target initially back towards this 69 level.

Uh, with the stop, uh, for the moment we may to put a stop, uh, quite a way away just to give it some room because we could see more of this pullback. So we're gonna put a stop, uh, down around 66 80, uh, for this one, um, in the hope that maybe we see a high or low establish itself, and then a fresh move to the upside begin. So we're going, uh, long Aussie dollar for the week, beginning Monday, the 24th of July, um, with our stop around 66 80.