Disclaimer: updating 3/30
CAD spiked a couple of weeks prior to this, pulled back for a couple of days, and then spiked again over the next couple of days. Price pulled back again after the second spike and then this morning, pushed up just enough to take out the highs of the spike. It looked strong, so I looked at it long.
AUD on the other hand had a big drop a week or so prior, rallied some, but only got about half-way back up the drop, and was pushing back down again over the last couple of days. This morning, price was sitting right around some support/prior resistance and looked A) like it had underlying weakness and B) that it could drop a good amount if it were to break that support level, so I looked at it short.
When I got to the chart, it was completing a bear rally and was almost at the breakout point of the bear rally. It looked good, and I didn’t want to miss it, so I ran the numbers, liked them, and set an entry order.
Entry – 0.96156
Exit – 0.96453
I’m not sure what happened, but a couple hours after hitting my entry, price rocketed to the upside stopping me out (with some slippage) for a loss. I assume there was a news event that happened that I didn’t pay attention to… I have to focus more on those. I need a new plan.
