Forex Trade Updates & Adjustments: 2014-08-22
My ideas in both EUR/JPY & GBP/AUD have been on the move, so it’s time to do a quick assessment and update ahead of the weekend!
Original Trade Idea: Downtrend Channel in EUR/JPY
It looks like I may have been early with my entry into EUR/JPY short as the pair moved higher throughout the week. This was due to a broad shift towards positive risk sentiment as we saw an absence of fresh geopolitical headlines from Ukraine or the Middle East this week.
With the pair still trading within the channel, I think a short bias is still valid for now. And if the top of the channel manages to draw sellers back into control, I’ll look for a way to improve my potential return without increasing my risk (additional small position & tighten stop). But for now, I’m gonna sit back on this trade and see what kind of news we get from Jackson Hole or geopolitical tension developments before making any adjustments to this trade.
Original Trade Idea: Another Look at GBP/AUD Short
Sad to say, but I missed the boat on the move lower in GBP/AUD since I didn’t get the pullback I was hoping for. The pair continue the break lower thanks to more bearish sentiment on the British Pound (due to increased speculation that we won’t see a rate hike from the BOE any time soon), and a broad rise in risk sentiment, which is usually beneficial to the comdolls like the Aussie Dollar.
With the pair now trading 200 pips below my entry, I am closing my open orders to short at 1.8000–No trade.
I will continue to monitor this pair and do some work over the week to see if it’s worthing divining into at market on Monday, or to see if a pullback may still be in the cards after the Jackson Hole weekend.
And for my GBP/CHF long position, that’s a fresh trade put on this week so no chart for this one since there wasn’t much change on the daily timeframe chart. After some choppiness and a dip lower, the pair is back up to my entry level, showing that this strong area of interest around 1.5100 may hold as support. Of course, anything can happen over the weekend, so stay tuned by checking out my thoughts next week. Until then, have a great weekend!