So much for that neat channel play! AUD/CHF busted right through resistance so I had to exit early before the pair even hit my stop.
Short AUD/CHF Idea
I hopped in a short position at market on this one when it looked like the descending channel resistance was holding and the pair was ready to resume its slide.
Economic data from China had come in slightly below expectations, so I thought that traders would anticipate weaker trade prospects for Australia and push the currency lower. As it turned out, the Aussie still managed to hold on to its gains because the actual results weren’t THAT bad.
Later on, Australia printed stronger than expected jobs data, with employment change up by 42K versus the 9K consensus and the unemployment rate down from 5.5% to 5.7%. Underlying data revealed that the jump was due to a pickup in full-time hiring and that labor force participation improved.With that, Aussie bulls got enough energy to push past the channel resistance and move all the way up to the .7400 area. My stop was just slightly past that level so I just decided to cut my losses by closing at market.
I probably should’ve reacted earlier, though, and jumped ship right when price surged past the .7350 area. This was already way past the channel resistance but I guess wishful thinking got the best of me as I kept my fingers crossed that bears would eventually return.
Here’s what I ended up with:
P/L: -108 pips / -0.44%
I’ve still got my long USD/CAD position open and now I’m worried that I may have caught another too-good-to-be-true setup. Tell me what you think!
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