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 NZDUSD at. 8214 - The Madness!!!

I know what you're thinking. Truly I must be a lunatic for shorting NZDUSD when it has already gone down so far and it's hitting the famed Golden Ratio. Well maybe I am. But I have my rationale for entering into the trade.

In September, this pair just couldn't figure out which way it was going to go. There was no clear defined trend as the bulls and the bears were duking it out. At first it appeared as October wrapped up and November began that the bears had a hold of this pair. But it soon realized it did not.

Price start taking off, with the exception of some brief struggles along the way. There was so much pressure going up, that I think the buyers just lost steam. Price fell hard and got caught in mid December, but that little indecisive candle that landed on the 38.2. For me, if the buying pressure was still strong, the retracement would have ended there and price would have continued upwards. But it had not. Price tanked all the way to the Golden Ratio. It would appear bears hold a hold on this pair for the time being.

Now here were are Christmas Eve. Coming out of a weekend and directly into a low volume holiday. And I find myself shorting NZDUSD. Even if it goes against me, I believe it will be a brief retracement before it turns back to let the bears have at it all the more.

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.