Good morning folks! I hope you are all well.
I’ll start with the watchlist – I have nothing on watch for a trade today! Sorry about that.
Now let’s review the AUD/NZD trade I executed yesterday
I executed a short position yesterday on Aussie Kiwi yesterday morning, since we had recently rejected an area of supply, and saw a trendline retest on the daily chart. Those were enough to make me want to look at the lower timeframes to see if I could find an actionable entry
On the hourly we also noticed a strong leg lower into an old area of demand, which led to a move higher into the 50EMA and the pivot. Both looked good, so I executed and followed my trading plan.
This is the second losing trade in a row where I notice that the EMA could have been a bit far away from the pivot at the daily open, so I’ll look for a mechanical manner to validate / or eliminate trades if there is an edge to doing so