AUDCAD - Follow Up

Its been a few days since we entered short on AUDUSD. Analyzing the trade on a lower time frame, we see a minor bullish rally being formed. This is a great opportunity for traders to add to their position as well as for those who missed out on taking this trade previously.

In the chart below we are looking at the H4 time frame which is shaping out to be bullish. I also have the Parabolic SAR plotted to get a sense of price.

AUDCAD - H4 - Bull Rally

So our trading plan will be as follows.

On the H4 chart, wait for Stochasitcs to cut above the 20 region and we go Long (with smaller/conservative lot size). We'll set take profit 1 to daily pivot of 1.0622, and TP2 @ 1.0648 (If you're aiming for TP 2, then make sure to adjust your stops because the daily charts is going for a downtrend).

In the course of this short long trade, we'll look for signs of a bearish stochastics so as to add to our existing position for AUDCAD.