In all honesty there still isn’t much out there that’s worth trading based on my low-risk approach but as I’ve not posted any updates for a Week here’s a quick one just to show I’m still plugging away in the background waiting for opportunities.
Last Week I mentioned a few trade possibilities and 2 of those played out well even though I didn’t take them myself. The 3rd one was AUD:CAD for a swing short from the same 50% fib level in this chart although I did suggest it may take a while to play out.
In essence what we have is a box-trade set-up which combines with the 50% fibonacci level which does add clarity for stop loss placement if considering such a trade. As things stand I’m not ready to jump into this trade just yet but with the 200 MA also a potential area of resistance I think this chart explains exactly what the short side potential is if Aussie bulls fail to move price higher over the next few trading days:
If the chart plays out perfectly we’ll see a marginal new high that will coincide with a lower MACD high and that would make it a perfect short set-up. Of course the next obvious level of upside risk is the 61.8% fib level but that in itself could suggest bulls still have the upper hand overall, so ideally we want to see a bull/bear struggle whilst MACD sorts itself out.
If I choose to enter this trade I’ll post the details in the comments section under this post.