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.
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?
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