Cheers to short-term plays! I caught another quick win with this long EUR/AUD uptrend retracement setup, and I’m keeping my fingers crossed that I can keep this streak up. If you’re wondering what I’m talking about, better review my initial trade idea first.
After a bit of tossing and turning around the 1.4700 area, the pair showed stronger bullish momentum so my adjusted entry order got triggered. I was a bit worried about cautious remarks from Draghi weighing on euro gains, but the medium-tier figures from the region’s top economies released throughout the week convinced me to keep this long position open.
This decision eventually paid off when the rally gained legs on more signs of political stability in the euro zone versus indications of weaker demand for Australia’s commodity exports. China printed another batch of downbeat figures earlier this week while growing doubts about U.S. fiscal policy reform also dampened global growth expectations.
With that, the pair made its way up to my profit target near the 1.5000 major psychological level. Resistance seems to be holding for now since Australia just released upbeat jobs figures so I’m thinking another quick retracement could be in the cards. For now, here’s what I got:
P/L: + 200 pips / +0.50%
As always, don’t risk more than 1% of your account on a single trade and make sure you read our risk disclosure if you’re thinking of taking the same setups.