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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Trade of the Week - long AUD/USD

IG chief market analyst Chris Beauchamp looks to go long AUD/USD around current levels, with a stop at $0.6680, as the Australian currency continues to make headway against its US counterpart.

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(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.

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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