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Looks like we’re seeing more bearish Loonie action on these pairs I’ve had on my watch list! I actually hopped in one and I’m still on the fence with the other.

Short CAD/JPY Trade

After spotting this rising wedge breakdown earlier this month, I just decided to follow my gut and short at market. I was a bit late to the move, though, as I got in below the 87.00 mark.

CAD/JPY Daily Forex Chart
CAD/JPY Daily Forex Chart

The reason I waited a bit longer was that I wanted to see a break below the small head and shoulders pattern as well. This gave me additional confirmation (and confidence!) that sellers are gaining the upper hand.

I’ve got a wide stop above the 90.00 major psychological resistance to give this trade some leeway, but I’m hoping I can trail it lower to entry or slightly below that in order to lock in some pips.

I’m a bit worried, though, that risk appetite is slowly making its way back in the markets this week. This could be bullish for commodities and the oil-related Loonie while weighing on the lower-yielding yen.

If so, I’m keeping my fingers crossed that a pickup in risk would result in a mere pullback before a longer-term downtrend takes hold!

Long AUD/CAD Idea

Here’s another neat short CAD setup… that I chickened out of taking! But I’m not too late if I do decide to hop in, right?

You see, I thought price was already making a break below the channel support as it dipped below the 61.8% Fib. However, the Aussie staged a pretty decent rebound on Monday to create a small double bottom at the channel support.

AUD/CAD 4-hour Forex Chart
AUD/CAD 4-hour Forex Chart

Stochastic is on the move up as well, confirming that bullish momentum is present. I think I’ll wait for a break past the double bottom neckline before going on a long position and risk a smaller part of my account than usual, especially since this is correlated to my short CAD/JPY play.

That’s all I got for now, folks. And in case y’all missed it, check out my latest updates on The Happy Hunter Trading System!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.