AUD, USD & JPY in the Spotlight, Bulletproof Risk Management, & Hitting Targets with AUDCHF

Good morning, traders! Wake up and smell the profits with C&C - where trading insights meet humour and a dash of caffeine.

It’s Tuesday, let us get stuck in:

☕ Market events set to stir AUD, USD & JPY

☕ Ultimate stop-loss strategy for bulletproof risk management

☕ AUDCHF target, potential market setups

🗞️Movers & Shakers🗞️

Australia’s Q1 CPI: Crikey! The Land Down Under is set to reveal its Q1 Consumer Price Index (CPI) data on Wednesday (Apr. 26, 1:30 am GMT). Look for hints on the Reserve Bank of Australia (RBA)'s potential next moves. Pundits predict a 1.3% QoQ jump, leading to a 6.6% YoY CPI. A stronger-than-expected outcome could fuel RBA rate hike dreams for May and strengthen the Australian Dollar (AUD). However, a slowdown in price pressures might keep the central bank chilling a bit longer, potentially weakening the AUD.

U.S. Advanced GDP: Uncle Sam's stepping into the spotlight on Thursday (Apr. 27, 12:30 pm GMT) with Q1 Gross Domestic Product (GDP) growth figures. Market gurus foresee a drop in economic activity from a 2.6% to a 2.0% quarterly expansion. The price index will likely dip from 3.9% to 3.7% QoQ. Remember, folks are already jittery about a possible U.S. recession, so weaker GDP numbers could fire up Fed rate CUT chatter and trigger some U.S. Dollar (USD) blues. Conversely, strong GDP data could support the Fed's rate hike plans and bolster the USD.

BOJ Monetary Policy: It's showtime for the new Bank of Japan (BOJ) Governor! Friday (Apr. 28, Asian session) marks Governor Ueda's first rate statement. No major shifts are expected, but any change in their forward guidance could send the Japanese Yen (JPY) soaring like a ninja. However, if the BOJ maintains its ultra-loose stance, the JPY might not see much movement.

U.S. Core PCE Price Index: Last but not least, the Fed's fave inflation yardstick, the core Personal Consumption Expenditures (PCE) price index, drops on Friday (Apr. 28, 12:30 pm GMT). This could shape the Fed's policy outlook in the coming months. Analysts anticipate another 0.3% increase, which isn't exactly jaw-dropping. A robust figure might keep USD bulls optimistic that the Fed will keep tightening its belt for a while. On the other hand, weaker core PCE figures might dampen the USD's strength and suggest the Fed will be more cautious with rate hikes.

Economic Calendar

Ultimate Stop Loss Strategy for Bulletproof Risk Management

This week, we're diving deep into the world of stop losses, the cornerstone of effective risk management. Let's explore how to set your stop losses and maximise your trading potential optimally.

➡️Define Your Risk Tolerance

Before entering any trade, determine how much you're willing to risk. A general rule of thumb is to risk no more than 1-2% of your account balance per trade. This helps maintain the longevity of your account and prevents catastrophic losses.

➡️Use Key Support and Resistance Levels

Place your stop loss beyond significant support (for long positions) or resistance (for short positions) levels to give your trade room to breathe. By doing so, you avoid being prematurely stopped-out by minor fluctuations.

➡️Consider the Average True Range (ATR)

The ATR measures the average price movement over a specific period. By setting your stop loss based on the ATR, you can better account for a market's volatility. A common approach is to set your stop loss at 1.5 to 2 times the ATR value.

➡️Trail Your Stop Loss

As the trade moves in your favour, consider trailing your stop loss to lock in profits. You can use a fixed pip amount, a percentage, or a technical indicator like a moving average to adjust your stop loss dynamically.

Action Steps:

✅Define your risk tolerance before entering any trade.

✅Set your stop loss based on key support/resistance levels and the ATR.

✅Implement a trailing stop loss to secure profits as the trade progresses.

Sip, Laugh, Trade 😁

📈Latte Line Up 📈

-EURUSD- (cont. last week)

HTF (12-HR): Refer to last week's edition here.

LTF(30- mins): Here, we can see the price has been range bound after the HTF rejection candles. To go long, I want to see a break and retest of the resistance around 1.1000. Targets at the previous 12-hr high around 1.1075 and stops below the previous lows once the price action develops. Make sure you get at least a 1:3 risk to reward.

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-CADCHF- (full target from last week)
Everything played out as planned on this setup we shared last week with our Forex Mastermind members. CADCHF sailed to full target.