So far so good on my current positions, but I’m looking to make some adjustments ahead of the Canadian jobs release this week. Make sure look at my initial trade ideas before reading on!
Short EUR/CAD
It looks like the downtrend is still intact for this one, as the descending trend line resistance held on that quick pullback last. To tell you the truth, I held my breath for a while back there, thinking that an upside breakout was about to take place!
But now that euro bears appear to be getting back on their feet and oil price rallies are supporting the Loonie, I’ll keep holding on to this one and probably roll my stop lower once price breaks below the nearby support around 1.4450. Either that or I’ll close this position completely ahead of Canada’s jobs release on Friday since we might be in for a downside surprise based on the May Ivey PMI report.
Long AUD/CAD
As for this one, I’m seeing yet another short-term reversal signal on the 1-hour time frame. I was able to go long on what seemed like a double top neckline breakout last week but it looks like price is forming an inverse head and shoulders formation this time.
The RBA’s decision to keep rates on hold was one of the main reasons for the pair’s recent rally and I’m considering adding on a break higher if China’s reports also surprise to the upside. The pair seems to be struggling to head north for now, as the oil-related Loonie is putting up a good fight, but I’m thinking a weak jobs release could spur a neckline break. If so, I’ll be ready to roll my stop higher and add another 0.25% position around .9575.
I’ll be posting any quick adjustments I’ll be making in my social media accounts so make sure you’re following me, and don’t forget to read our risk disclosure if you’re taking the same setups!
Cheers,
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