AUD/USD & USD/CAD Forex Trade Updates

Short AUD/USD Forex Trade Setup

Not a good time to be an Aussie bear! Just when I thought risk aversion would keep AUD/USD’s gains at bay, the Australian economy printed a couple of stronger than expected reports. I should’ve cut losses when I had the chance.

AUD/USD Forex 1-hour Chart

AUD/USD Forex 1-hour Chart

I know, I know… Strong Australian retail sales AND trade balance figures should’ve been my cue to exit early! There were other signs signaling that the Aussie’s selloff was over, as risk appetite returned to the markets when the tension in Ukraine seemed to subside. I guess I was counting on RBA Governor Stevens to jawbone the Aussie in his testimony during the U.S. session.

As for my USD/CAD trade idea, well, I decided against taking that one since Canadian reports came in very strong. Did you see that jaw-dropping 8.5% gain in building permits and not to mention the better than expected Ivey PMI?! I’ll give myself a small pat on the back for deciding to wait for confirmation from fundamentals before jumping in a long trade.

Right now, I’m staring at a 0.5% dent on my account as I lost 150 pips on my AUD/USD short. Do you think it’s time to switch sides and join the pro-risk anti-dollar camp? After the NFP is coming up and there’s a good chance we’ll see another round of weak jobs data. What do you say?

Cheers,

Happy time

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  • PipPong88

    I had a loss of 22 pips as well for my AUD/USD trade, and it accounts to 2.93% of my account! (my account size is relatively small) and I had exactly the same thought as you! But it seems that jawboning the AUD seems not as effective these days…

    Better luck next time!

    • Happy Pip

      Oh, that’s too bad! Yep I think it was a bit of “confirmation bias” on my part that I just focused on the reports that supported my trade instead of keeping a more open mind and acknowledging signs that I should be cutting my losses. Better luck next time to you too!

  • John

    I’m sorry to hear your trade was unsuccessful. I’m an Aussie and NZD bull and I had some sweet gains this week, around 2,4%.

    I remember reading in the school of pipsology, that just because of some losses, you shouldn’t abandon your trading strategy. So maybe you can have a relaxing weekend and then start again completely refreshed on sunday evening 🙂

    However, if you wish to join us bulls, there’s a sweet complementary positive rollover rate to every trade you make 😉

    • Happy Pip

      Thanks for checking out my blog and for the encouraging feedback! I’m a bit bummed out about my losing trade but your kind words did help me feel a little better 🙂 Thanks for the reminder to stick to my trade strategy and enjoy a bit of relaxation to clear my mind first… it does help!

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