Paper trade: Short AUDCAD @ 0.9583, Stop 0.9670

Gold price made a 15 point jump over the weekend to 1160 and is consolidating now (Fig. 1). Crude oil tested 84 and is back down to just above 83 now. Yet, AUDCAD is still struggling to break above 9600 (Fig. 2). You would have thought that AUDCAD should mustered enough momentum to break above this key resistance with all these gold bullishness and oil bearishness. Thus, I am giving this AUDCAD short setup as described previously another try. I am only risking 0.16% on this trade. It is half of my usual initial entry. First because it is a FTR (reversal) setup and second because I am in a 3% drawdown. So my risk manaegment rules dictate that I trade halved size.

This setup is according to the monthly and weekly chart, so it could take a while, and probably more tries, before it shows its hands. I will keep shorting it as long as it’s below 9600 on the weekly. Limited by the amount at risk according to my risk management rules, of course!

Gold (GC futures), 4-hour left, daily right

AUD/CAD, 3-hour

Related posts:

1. Paper trade: Short AUDCAD @ 0.9489, Stop 9540
2. Paper trade: Short AUD/JPY @ 84.53, Stop 85.00
3. Paper Trade: retrying AUDJPY short @ 84.52, Stop 85
4. A change of wind for Australian dollar: Shorted AUDUSD @ 0.9183 and AUDCAD @ 0.9546
5. Paper trade: Short USD/CAD @ 1.0573, Stop 1.0640, Target 1.0415