*Position Update: As of 01/30/2015 @ 8:31 EST the Global Currency Scalper was stopped out of its AUD/CAD position with a 127.5 Pip loss. Our first loss of the month, unfortunately this trade just never worked out from the start.
As of 01/27/2015 @ 11:03 EST:
We have identified AUD/CAD as a possible short trade. After a strong run-up from the end of December on the 4 hour chart this pair is possibly forming a head and shoulders pattern. The left shoulder was clearly formed a couple of weeks ago, the head formed just last week. The right shoulder may have been formed earlier this morning and if it proves to be so we will be looking to take this pair short with a break of the neckline.
The Global Currency Scalper will be looking to short AUD/CAD with a break of 0.97527 which is giving the neckline approximately 20 Pips to confirm a break. Keep in mind, with a head and shoulders pattern which has a tall head (as this pattern shows) a neckline break is less reliable, so keep your stops honest. Our forecast is to see 0.97380 which is the 50% Fibonacci retracement (we believe this level will be taken out by at least 20 Pips), then the figure of 0.97000 and 0.96780 which is the bottoms in place earlier this month and then ultimately 0.96580 which is the 61.8% Fibonacci level. We will set a stop with a break of 0.98800, if this level is breached before initiating our position then our view will change to neutral and further evaluation will be needed.
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