What Do YOU Think of this Live Forex Trade?

Today I will present you a trade setup on the Australian Dollar (AUD) versus Canadian Dollar (CAD). I will dive into some of the details but most importantly I want YOUR feedback on this setup. First let me show you the trade…

28- 1- 2015 audcad

The AUDCAD weekly chart has a massive wick on top of the candle (pinbar). The run-up lasted 3 weeks but week 4 bumped into massive resistance and the turnaround was impressive: a bearish close with a wick that is +/-75% of the candle.

The current weekly candle has retraced back to the 61.8% Fibonacci level when placing the Fib tool on the weekly candle itself.

I have taken a short here with a stop loss above the candle high and a take profit aimed at the -61.8% Fibonacci target.

28- 1- 2015 audcad 2Β 

I will ask YOU a very simple question: what do you think of the AUDCAD trade setup?

  • Yes I agree with the short trade;
  • No I disagree with the short and am thinking long;
  • No I disagree and would rather wait.

 

When making the decision, you do not need to use the weekly chart only. You can use any charts that are available.

What do YOU think of the trade idea?! Write down A, B, or C in the comments below and tell us why.

Thanks for your feedback, sharing this post and wish you Happy Hunting!

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  • Chris

    Yes good point! And thanks!

  • That’s exactly what I was talking about when I said to look for fundamental data. Well done!

  • Chris

    The trade closed for a 350+ pip profit! πŸ™‚ The Aussie interest rate cut nicely gave the push the Aussie needed to fall, thank you RBA πŸ˜‰

  • Chris

    Hi Bim, ok understand. Thanks for the feedback!

  • Bim

    Hello Chris, I agree with Casey, means ‘No I disagree and would rather wait’

  • Chris

    Hi Mayu, thanks for the feedback! Good point that both pairs have been relatively weak. One of the things I did not like about the trade either. Other currencies have been stronger like the USD and GBP. But I did take it because the weekly week was just too appealing πŸ™‚

  • Chris

    Hi Casey, thank you! Totally agree with your comments that the market could get trapped in sideways choppiness. Bank of Canada dropped their rates and there has been a lot CAD weakness on other pairs so CAD strengh trade could be a tough one to get πŸ™‚ Lets see indeed how the trade develops.

  • Chris

    Thank you for the feedback Vasilis!

  • mayu

    I think its a brilliant setup but problem for me is we are trying to find a stronger one among two weak contenders. Fundamentally Aussie had a bad news , I guess its better to trade/see against a much stronger pair like dollar. Having said that I guess u need to trade what u see ? Waiting to hear from experts

  • Chris I like this trade and I will be following this trade myself. Very Good analysis. The only think is that we are really needing some additional CAD strength to push it down or else it could sideways until the markets know which pair is stronger. Lets watch the news on these two pairs.

  • VASILIS NOUSKALIS

    Yes I agree with the short trade;

  • Chris

    Does anyone else want to join the debate? There are some reasons why this trade is NOT good in my opinion. Who knows the answer?

  • Chris

    Hello Carl, great to get your feedback. You have good points indeed regarding oil and AUD vs CAD strength. A range is certainly possible as well. If the trade goes into a long consolidation, then I will consider moving my SL to reduce the risk. Thanks for the chat!

  • Carl Schmidt

    Yes it is in order. We have been in a good uptrend, the AUD has some more falling to do and the cad will strengthen a bit and oil should rebound to help the CAD a bit but if the CAD does not strengthen the AUD will be weaker short term. Also I believe we are going into some ranging markets for a bit. Thanks for sharing!