I’ve got a couple of forex positions open so far so here’s a quick update on how my CAD/JPY and GBP/AUD trades are doing.
GBP/AUD is still lingering around my short entry area after making another test of the channel resistance recently. It looks like the downtrend is set to resume since I’m seeing a tiny double top pattern, although price appears to have found support at the mid-channel area of interest.
I’m a bit torn on this one, as I’m actually bearish on both the British pound and the Australian dollar. As Pip Diddy pointed out in his forex updates, BOE Governor Carney just admitted that they’re not likely to hike rates anytime soon and that the slowdown in China is likely to cause more pain for the comdolls.
For now, I think I’ll just hold on to this one since the technicals are still looking pretty neat and I’m able to rake in positive carry anyway.
As for my CAD/JPY setup, I was able to hop in around 81.45 yesterday when price pulled back to the trend line and Fib levels that I drew. In fact, the pair is inching close to my first profit target at the previous lows way before the BOC statement is scheduled to take place!
With that, I’m now considering adding to my short position on a break of the 80.00 major psychological support and previous lows. Of course I’ll be trailing my stop lower to lock in some pips from my original short entry while trying to press my advantage if the BOC does drop some dovish beats later today. If so, I’ll adjust my profit target to the next visible support zone on the longer-term charts around 75.00.
What do you guys think of my trade plans? Should I be making more adjustments or just cashing in my profits now? As always, I’d love to get your feedback on my ideas!
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