Trade Review: Trading EUR/USD’s Range Resistance

My losing streak on EUR/USD is finally over! With the Fed’s decision only a few hours away, I’ve decided to lock in profits and wait for the next forex opportunity. Woot! Woot!

Original Trade Idea: Trading EUR/USD’s Range Resistance

As I mentioned in my tweet last week, I shorted EUR/USD at market when it didn’t hit my entry orders at 1.1350. Instead, I entered at 1.1280 and held on to my position over the weekend.

EUR/USD 1-Hour Forex Chart

EUR/USD 1-Hour Forex Chart

This week I noticed that the rising trend line that I was worried about had held despite the overall risk aversion that took over the markets. If you recall, Brexit fears as well as not-so-awesome data from China have weighed on high-yielding bets and pushed low-yielding currencies like the yen and the dollar higher.

Forex Gump also added into the mix, as he pointed out that a lot of traders are bracing for less hawkishness from the Fed members this week. Volatility could also be an issue especially since Janet Yellen will take the mic in a press conference after the decision. In any case, the bullishness of EUR/USD’s short-term chart as well as threats of increased volatility have convinced me to take my open trades off the table before the Fed’s event.

I closed my trade at 1.1217 and locked in 65 pips, nudging my account 0.0007% higher after risking 0.25% of my account.

Not exactly the trade of the century, but it was still a good trade overall. Hey, it got me over my EUR/USD slump, didn’t it? It also helped me limit my risk ahead of a potentially volatile event.

That’s it for this trade! Now all that’s left (after journaling this trade, of course) is to keep my fingers crossed for more trade opportunities after Janet Yellen and her gang have left the stage. Anyone out there looking at potential setups on the majors?

Thanks! XOXO,

Huck

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  • Traider

    Why are you risking only 0.25%? That’s very little and so are profits

    • Heya Traider!

      I’m only risking a bit at a time because I’m trying to get my trading mojo back. By risking small positions I can concentrate on the trading process (instead of profits) while still trading a live account. I’m hoping to eventually increase my average position size as I build my trading confidence.

      How about you? How much do you usually risk in one position? In one trade? 🙂

      • Traider

        I see. Personally I risk about 5% on average, trading the original cowabunga system,
        Hey, I see you have a profitable mechanical system running, why don’t you trade only it?

        • I’ve considered it before, actually. Thing is, I can’t sharpen my skills with purely mechanical trades like in the HLHB’s. Hopefully I get better at executing trades so I can match my mech system’s performance!

  • forzion

    Congrats. I think that was wise decision

    • Thanks! It turned out to be a pretty good choice as EUR/USD popped up to the 1.1400 area right before the Brexit vote. Crossing my fingers for another good trade this week!