Gotta know when it’s time to let go and move on… And nope, I’m not talking about my Valentine’s Day date! I’m referring to my AUD/USD and GBP/CAD forex positions.
I thought that this pair was already going my way last week, as price tested support at the .7000 major psychological mark. As it turns out, that area was one tough cookie, as support held once more and pushed AUD/USD back above my short entry level at .7100.
Since this week seems to be shaping up as a risk-on one, I’ve decided to just cut my losses and exit early. I wasn’t able to trail my stop lower as I planned in my previous update, as price didn’t show much downside momentum.
Big Pippin warned me that GBP/CAD has been stuck inside a range and that support at the 1.9900 area appears to be holding like a boss. Since I thought I was too early with my short entry on this one anyway, I just decided to wait for a test of the range support to close with a tiny profit.
I’m still bearish on this pair, though, as BOE policymaker McCafferty (yep, the one who used to vote for rate hikes) just recently spoke about the possibility of negative interest rates. I guess I’ll just wait for the market to pick a strong direction before hopping in, but I’m hoping the U.K. catalysts this week could trigger a breakdown.
Here’s what I got:
Short AUD/USD: -50 pips / -0.13%
Short GBP/CAD: +25 pips / +0.01%
Any other comdoll setups you think I should be watching? Don’t forget to check out our risk disclosure if you’re also taking these setups and as always, I’d love to hear your feedback on my forex ideas!
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