Sellers took control of AUD/CAD quickly after jumping in at the Fibs and with Aussie jobs ahead, it’s time to lock in some profits. Here’s a quick adjustment on my short position.
Fib Short on AUD/CAD
It didn’t take long for my short position in AUD/CAD at 0.9329 to work out as the Loonie benefited from a recent oil rally and positive Canadian economic updates, while the Aussie felt the selling pressure after a dovish RBA meeting and weak Australian economic updates last week. The pair dropped roughly 100 pips from the Fibs and is currently stalling around the previous swing area just above the 0.9200 handle.
So, it’s a pretty nice gain so far, but with the Aussie jobs data coming right around the corner, I decided to lock in some profit given that leading indicators show a little bit of improvement in that sector for Australia. Here’s what I did:
- Closed two thirds of the position at market (0.9229)
- Rolled stop on remaining position down to 0.9280
- Rolled max profit target down from 0.9200 to 0.9100
This adjustment takes my max risk down from 0.50% to 0.12%, and locks in a 0.36% gain (or 0.73:1 R:R)–which is not too bad for just holding a week. This also increased my max potential gain from 0.63% to 0.81%, or 1.67 R:R on the original 0.50% risk, which I may see within the next week if the market goes my way.
Once the Aussie jobs number comes out, I’ll do a quick reassessment to see if it makes sense to hold or adjust my exit points, or possibly even add back to the position. Stay tuned for that and let me know what you think of my adjustments in the comments section below!
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