Your 'Hit and Run' Currency Trade
If you're on the hunt for a very short-term currency trade, this strategist has just the thing.
Sometimes fundamental factors drive trading ideas, and sometimes you just have to go with the charts.
Todd Gordon , co-head of research and trading at Aspen Trading Group, has noticed a double top pattern in the Australian dollar, and he argues that it's a sell signal.
"I used that today to get short Aussie, " Gordon told CNBC's Melissa Lee .
He recommends selling the Australian dollar against the dollar at 1.0220, with a stop at 1.0400 and a stop at 0.9900.
"Gold is at the low, Aussie's at the low, we're just at the end of a consolidation, " Gordon says. "This is very much a 'hit and run' kind of trade."
Kathy Lien, managing director at BK Asset Management, says the trade makes sense in fundamental terms as well. She points out that Australia's central bank is due to meet, and it's quite possible they will cut interest rates, which would put downward pressure on the Aussie.
Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm.
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