We’ve wrapped up a great AUD/CAD trade by taking profits on the second part at 1.0459 for a gain of 164 pips. We sold the first part on Aug. 23 for a gain of 147 pips. The combined net gain of the trade was 311 pips. For those with interest earning accounts, this trade would have also provided positive carry for 18 days.
This was our only trade of the month and we loved every minute of it. We avoided the volatility elsewhere and were holding a profitable position nearly every day.
The trade was based on the weekly chart that we posted here and at chart.ly. We pointed out the dragonfly reversal and a noted that it pointed to a re-test of 1.05.
AUD/CAD reached as high as 1.0480 yesterday and has been up for four consecutive days. We may see another 40-60 pips of immediate upside in this trade but we’re now growing more bearish about the global economy and are looking to put on some trades reflecting that. We expect to see some sort of spike higher in risk trades followed by a reversal in the next day our two. Follow @FX_Button for all the trades.
I want to let this trade sink in and I will have a full review with charts tomorrow.