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…
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.
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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