Slow start for the week. I did not find too many interesting setups at the early of the week. Anyway, who is looking at $AUDCAD? I thought we have some interesting bearish harmonic setups here. I am looking at short opportunity here. It is not too difficult to see the confluence of fib levels, Channel bands, and price resistance at current level. Well, and the little ABCD formation into the zone is just another sweetener. Let’s see how it goes.
[tab: Initial setup 19 Jan 2011]
No guarantee of success, but a window for me to enter the market.
Here is the….CHART!
[tab: Update 21 Jan 2011]
The weakness of CAD bothered me a bit initially, and this setup was working out slowly. Good news is, it works, and it works out nicely. Two-day work (or waiting) for over 100 pips of profit, I can’t complaint. Anyway, AUDCAD is now back to the lower channel band, I have taken majority of my position out, and leaving a small position to ride towards 0.97, well if it ever reached there, who knows?
I am pretty much done for the week, still have a couple of setups are developing, let’s see what brings on during Friday session. Otherwise, Have a nice weekend ahead!
Here is the updated CHART!
I think these two currencies are really interesting at the moment. Both are trading around parity against the US dollar and it seems neither can hold above parity for long, but likewise neither stays too far below for long. I have been looking at ‘magnet’ trades, where the parity level acts like a magnet when price gets too low or too high. These trades have so far provided some nice trades.
On a separate note, I cannot help but thinking the flooding in Australia will have some negative economic implications and perhaps way on the strength of the AUD.