Fri Oct 31 - Whipsawed in the range

AUDUSD has consolidated for 4 weeks on D. Wednesday's FOMC caused the USD to strengthen in its group. AUDUSD crashed, but not as much as EURUSD or GBPUSD making it a better pair to try a range short nearer the top of its range. I kept an eye on its partner but was hesitant to short AUDCAD since its D was in an uptrend.

4H shows a 50% retrace that rolled over. I awaited a move to the trap above but it rolled over on 60m. I entered via a Limit Order on a quick pullback. The trade went 20 pips in favor and then formed a DB on 60m and slammed 25 pips against me. I cut it at 18.

AUDCAD looked more bullish and I no longer saw correlation to head down. It is rare that I flip my position, but it was a play to test the highs of the range on D. I entered AUDUSD long deciding that CAD was risky with the GDP figures release in a few hours.

AUDUSD worked it way to +24 pips but was reversed on the USD strength from its Orange reports.

Not shown is AUDCAD which has continued to rally. This is frustrating since I knew AUDCAD was the better buy, but chose not to take the trade on that pair. In the end USD maintained strength and CAD maintained weakness regardless of the report results, better to stick with their fundamental biases.

Despite both trades going beyond 20 pips in favor I took losses on both - not even break-even on either. Reason being I am trying to hold through reports, but wouldn't be so bad if I occasionally survived them. However, with the stops being closer than targets I am dealt losses as the markets jiggle within the range.

I will have to analyze the report expectations and consider exiting ahead of reports.

Summary: 2L for -1.3R overall.