Both GBP/AUD and EUR/CAD were on the move and in my favor, so some adjustments were made–some good and some not so much. Here’s a quick review!
Support Break-n-Retest on GBP/AUD Ahead?
The Sterling sell-off continues big time this week, this time after British PM candidates set high bar for Brexit talks: no Irish backstop. This development greatly increases the probability of the disastrous no-deal scenario, so traders went into full bear mode on the British pound in the last session. This worked out well for my GBP/AUD short idea, which was only able to get half of my position working as the bounce only reached my short orders at 1.8000. It worked out so well that just a few days after triggering, we saw the pair drop 300 pips lower to my max profit target at 1.7700 where my trade was closed automatically.
Total: +300 pips / +0.57% gain on 0.50% risk
Overall, it was a nice win for the account, but I think I will hop back onto this pair sometime soon as the current course of events in the U.K. in regards to Brexit could lead to more Sterling weakness. It appears the pair has found a bottom for now, so I’ll be on the look for a bounce and resistance for the next few weeks.
Fib Pullback on EUR/CAD
Last week, I was looking to short EUR/CAD on a bounce to the Fibs to play the possibility of more ECB stimulus and the current down trending price action in the pair. Unfortunately, the bounce could get up to my short orders (1.4800 and 1.4900) before moving back to the downside last week and picking up momentum today, possibly on the idea of a no-deal Brexit scenario or another Brexit delay scenario if Boris Johnson becomes the next Prime Minister in the U.K.
So, I missed the move, and with the market back to swing lows around 1.4650, I decided to cancel my orders at 1.4800 and 1.4900 for now to see what we get from tomorrow’s Canadian CPI data. Depending on that information, I may re-enter new short orders, which will depend on if we’ll get another bounce or the market breaks lower. So stay tuned for that and until then, good luck and good trading!
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