Trade Review: NZD/CAD Descending Channel

Downbeat jobs figures from Canada convinced me to jump ship from this NZD/CAD short position, as I worried that it might spur an upside channel breakout. As I’ve mentioned in my tweet last Friday, I was able to escape with a teensy win by closing early.

Oh, if you’re wondering what I’m talking about, make sure you look at my initial NZD/CAD short trade idea and my fundamental reasons for entering this setup at that time. Towards the end of last week, the tides seemed to be shifting against the Loonie, as forest fires broke out in Canada’s energy-rich Alberta province and the jobs data came in way below expectations.

NZD/CAD 4-hour Forex Chart

NZD/CAD 4-hour Forex Chart

I was able to exit at .8820 for a meager 5-pip gain on this trade, as I was also worried about possible weekend gaps on the release of China’s trade balance. In retrospect, I probably should’ve held on, as the pair is showing more downside momentum on renewed RBNZ easing speculations.

Still, I’m pretty happy with my decision to just exit instead of leaving it all up to chance. That Chinese trade report could’ve gone either way anyway and the odds weren’t in the Loonie’s favor prior to that release. Here’s what I got:

P/L: +5 pips / +0.01%

Got any comdoll ideas you’d like to share this week? It looks like some of the setups I’ve noted in my Comdoll Trading Kit are starting to play out!

Cheers,

Happy time

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