AUDCAD | Floor isn't going to hold
On Friday, price opened the day at 0.9150. It closed the day at 0.9095 - a 55 pip drop, significant for a pair as docile as the AUDCAD.
Retail trade was positioned 66% long on the pair at Fridays open. And by market open today, that number had jumped to a whopping 78%.
When Retail Rick is positioned one way, I'm really keen on taking the other side.
A quick switch to the weekly chart shows what the retail crowd is betting in - its betting on this currently level holding.
But why should it? Because it has in the past?
Or maybe it must bounce because price has been in a downtrend for so long, it just "has to" go up, right?
Nope.
I will be looking to short this pair in the coming weeks, down to about 0.8700 (and beyond if it keeps going)
Retail trade was positioned 66% long on the pair at Fridays open. And by market open today, that number had jumped to a whopping 78%.
When Retail Rick is positioned one way, I'm really keen on taking the other side.
A quick switch to the weekly chart shows what the retail crowd is betting in - its betting on this currently level holding.
But why should it? Because it has in the past?
Or maybe it must bounce because price has been in a downtrend for so long, it just "has to" go up, right?
Nope.
I will be looking to short this pair in the coming weeks, down to about 0.8700 (and beyond if it keeps going)
Trade closed: target reached