Hey, comdoll buddies! Here’s a quick update on how my short AUD/JPY and short EUR/CAD setups are faring. Make sure you take a look at my initial trade ideas before reading on!
As you can see from the 1-hour chart above, I was able to short at 78.85 on what seemed to be a downside triangle breakout. Price showed a bit more bearish momentum by breaking below that short-term consolidation pattern but soon found a bottom around 78.50 before zooming back up.
I thought this was just a quick pullback to the broken triangle support, which held as resistance for a while. However, I noticed that price started to form higher lows, indicating that Aussie bulls are pushing harder. This behavior carried on early this week so I just decided to cut my losses at 79.80 as I’ve mentioned in my tweet yesterday.
For this trade, I chalked up a 95-pip loss or a 0.19% dent on my account, which is still less than half of my 0.5% risk.
Now this short trade I’ve decided to keep open, even with the event risks lined up from the euro zone and the Canadian economy this week, which are the ECB interest rate decision and the OPEC meeting.
Policymakers at the ECB aren’t really expected to announce any major changes to monetary policy for now but they could reiterate their willingness to ease further, especially since data from the top euro zone economies have been far from impressive. Meanwhile, the OPEC is also likely to sit on their hands but the leaders of the oil cartel might highlight the pickup in crude oil prices recently and express confidence about a market rebound, which might then lift the commodity and the oil-related Loonie.
So far, EUR/CAD is still hovering close to my entry area at 1.4550 so I can’t make any adjustments just yet. I’m seeing a bit of a bearish flag after that double top breakdown so I’m taking this as a sign that the selloff could resume at some point. In any case, I’ll be on the lookout for any potential changes in market sentiment that could convince me to exit early.
Don’t forget to check out our risk disclosure when taking any of these setups. Got any comdoll trade ideas you’d like to share? Post ’em right here!
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