Commodity pairs made large moves overnight. Both the CAD and AUD strengthened against the USD. The AUD is usually easier to trade and it set up with a very low risk trade. Once all major economic news releases were behind us, we entered long with a very cheap stop, giving us a 4:1 reward to risk ratio trade setup. Price moved up above the Asian session highs and continued to Target 1 and up to Target 2. At Target 2, we know that price is much more likely to pull back than to advance further. We closed the trade on the next candle – as the spread kept us from being closed when Target 2 was touched.
The AUD appeared to get a second wind and rose even higher… but without us. Keep it SIMPLE and NEVER be greedy!
The week continues…
Good luck with your trades!