I’ve got the updates on my USD/CHF and EUR/USD forex setups from a few days back! Any tips on how I should handle these positions?
Original Trade Idea: USD/CHF’s Downtrend Retracement
I’ve decided to nix this trade idea when I saw that the pair had failed to hit the retracement levels that I was watching. I did consider jumping in though, when USD/CHF “broke” below the falling trend line. Good thing I didn’t! The breakout turned out to be a fakeout and the pair is now back inside the channel. Should I wait for another opportunity to short? The fundamentals are still kinda valid after all.
Original Trade Idea: EUR/USD’s Major Resistance at 1.1400
Aaand I’m in! As I mentioned in my tweet last week, I entered at market (1.1258) when I saw that there was momentum in the euro’s weakness against the dollar. I put my stop loss 220 pips (a full weekly ATR) away and placed my initial target at 1.0850. Should I add to my position and bump my overall risk to 0.50% now that the pair is slightly nearer to the 1.1400 mark?
Here’s what’s up: Shorted 0.25% of my account at 1.1258 with SL at 1.1478 and initial PT at 1.0850.
I’m thinking of waiting a bit to see if the euro zone’s reports and the ECB’s decision this week would provide support to my trade setup. What do you think?