There are a lot of great setups to start the year and I honestly had a hard time choosing which one to use as the trade of the week. I have setups on the GBP/CAD, AUD/JPY, AUD/USD, GBP/NZD, and NZD/CAD to just name a few. Noticing a trend here, all the commodity currencies are the common link in all of my setups. With so much movement towards the end of the year, they have left some great setups for me to take advantage of in 2016.
For the purpose of our trade of the week, I chose to go with the NZD/CAD. The move looks so overdone. I will be taking a short trade at the market rate on the open of this week, assuming there is not a huge gap. Market closed at .9442 on Friday so I will look to get short in the same area. A gap higher would be a blessing, as it would allow me to get in at a better price.
Stops will be placed above the March 23 2015 high of .9619. I will give it a little room and place at .9635. First take profit is at .9194 with the second at .8962. Obviously the big underlying factor here is oil. If oil bounces then this trade will follow suit but ultimately if oil tanks, then it move the trade against us. See the trade below.
Stop= .9635 = 177
Entry= .9442
TP1= .9194 = 248
TP2= .8962 = 480
www.fxtradersclassroom.com
For the purpose of our trade of the week, I chose to go with the NZD/CAD. The move looks so overdone. I will be taking a short trade at the market rate on the open of this week, assuming there is not a huge gap. Market closed at .9442 on Friday so I will look to get short in the same area. A gap higher would be a blessing, as it would allow me to get in at a better price.
Stops will be placed above the March 23 2015 high of .9619. I will give it a little room and place at .9635. First take profit is at .9194 with the second at .8962. Obviously the big underlying factor here is oil. If oil bounces then this trade will follow suit but ultimately if oil tanks, then it move the trade against us. See the trade below.
Stop= .9635 = 177
Entry= .9442
TP1= .9194 = 248
TP2= .8962 = 480
www.fxtradersclassroom.com