Didn’t think this forex trade had any more legs, so I decided to close my AUD/CAD short ahead of the weekend. Here’s a quick trade review.
Original Trade Idea: Forex Trade Idea: AUD/CAD Short
I’ve been holding on to this trade for a while, and while there were a couple of breaks to the downside, they were all quickly met with buying support between .9700 – .9800 that seems to be holding well. With oil making a rally recently and supporting the Loonie a little bit, I decided to take this slight move lower to close out my short AUD/CAD position since like the oil industry’s thoughts on the oil market, this might be as good as it can get for this trade. This afternoon, I closed out my small position in AUD/CAD manually at .9839 for a small gain.
Total: +102 pips/ +0.13% gain on 0.25% risk
Overall, I wouldn’t change much to this trade and I really feel like the Loonie isn’t going to get a boost anytime soon. Of course, I could be wrong and oil could rally further on the recent talk that OPEC may cut oil production, but that’s just talk right now and the Asian market players coming off holiday next week may not have the same faith in the oil markets or risk assets.
I still have my NZD/CAD long and EUR/NZD short positions open, which I may have to adjust quickly at the start of next week with big New Zealand data coming up, but I think they’re good to hold for now into the weekend. Thanks for checking out my blog, see ya next week and have a great weekend!