AUD CAD

This morning’s forex trade was based on the AUDCAD, a pair I don’t normally trade but as readers may know I’ve recently been road testing some indicators and this was the pair which was highlighted at 8.30 am.  Long trade entered on 5 min chart at 1.0138 before exiting at 1.0155 for 17 pips.  Since exit, indicators have signalled a short on 5 min but actually waiting on the 15 min to see if move down is validated.

This morning’s trade was also useful for a number of other reasons.  First as forex traders we can become too focused on the majors which can often lead to frustration and a lot of what I like to call “forced” trades.  Now, I appreciate there is more liquidity in these pairs but sometimes we just have to move away and broaden our horizons and, I have to be honest and say, it made a refreshing change from the dreary tedium of the euro woes.  Second, as forex traders we need to remember the forex market is a speculative market with no one really knowing why currencies are being bought and sold and, as such, currencies will move around for a multitude of reasons. For example, a large exporter such as Honda may decide to hedge before shipping its products overseas and which may affect particular pairs in the short term.  Whilst no doubt interesting all we want to do is profit from a currency’s strength or weakness.

About Anna 1007 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

2 Comments on AUD CAD

  1. Hello Anna,

    I have noticed that you advocate the use of other markets like equities and bond
    markets in order for the forex trader to become better acquainted with market sentiment. Could you let me know which charting package you use for bond markets – I have been struggling to get some decent, fast moving accessible charts of instruments like the T Bond futures or Bund or UKGilts.
    Many thanks in anticipation.
    Regards.

    Manoj.

    • Hi Manoj – many thanks for your question – I tend to use Interactive Brokers for all my charting as this is the platform I use most of the time as I can trade any market or instrument from one platform – and they’re very competitive on price. Their platform isn’t the easiest in the world, but if you are trading several different instruments and markets the live feeds are very competitive as just a few dollars a month. Hope this helps and good luck with your own trading – regards Anna

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