Trade Update - AUDCAD

Price does what price will do. Yesterday, we saw price reverse on us. Typically that is a sign of a potential trend reversal. It is not the most unexpected move, so no huge red flags were raised.

Today, price dropped and retraced from the similar area that's seemingly support.

With two days in a row where buy orders were filling up in fast demand it was worthy of preventing any potential losses.

I placed a stop loss at 1.0337 leaving us with a 15 pip loss if hit.

Short AUDCAD at 1.032

After weeks of being in a range, it looks like AUDCAD is finally breaking out. At times, price can get caught in a range, and when that happens I usually look to identify the cause of it. I drew a rectangle over what I believed to be the culprit.

Price shot down over those two days, however, since then it went range bound as it could not break loose of the support that was resting directly underneath. If you take notice of the candlesticks for the last few days they are exhibiting a behavior that hasn't yet been seen in this range.

There was four consecutive days where price dropped and yesterday it actually closed below the low that I have been keeping an eye for. And today, price continued to drop even further. It was at that point I decided it was time to enter the market with a short order.

I have no designated SL yet, but if you must, feel free to have your stop loss at the top of this range.