We saw a big rally in risk-on sentiment today, pushing buyers into the comdolls, including the Aussie. It was enough to trigger my adjusted stop in AUD/USD to close out my trade for a small profit. Here’s a quick forex trade review.
Original Trade Idea: Forex Trade Idea: Rising Wedge on AUD/USD?
After breaking below .6900 and rolling down my stop to to .6965 to lock in profits last week, AUD/USD had trouble starting another leg lower. And it was likely the European Central Bank’s monetary policy meeting today that prompted forex traders to go bullish on risk assets on the idea we may get more quantitative easing from Draghi and company. High-yielders everywhere rose after the event, including AUD/USD, which pushed higher to my adjusted stop and closed me out at .6965.
Total: +202 pips/ +0.12% gain
Overall, I’m happy with how this trade went, and I’ll likely take another short position on this pair since a bounce would bring the pair up to create a simple trendline “break and retest” setup. I’ll probably go a little bit bigger on my next short because this small win gives me a little more wiggle room in my risk tolerance.