Forex Adjustments: 2014-03-20
Greetings! I decided to adjust both of my CAD short positions, taking off some risk and locking in small profits ahead of the weekend and another monetary policy event!
Before you move on, for those who are not familiar with my framework, signals, setups, or acronyms, please visit my discretionary trading framework blog.
BOC Governor Poloz helped out my trades this week with comments that he cannot rule out an interest rate cut for Canada. Of course, the reaction was bearish and it looks like there were no Loonie bulls in the waiting to fade this move out. I think playing Loonie weakness is still a high probability setup, but I decided to lighten up today ahead of the weekend and the SNB monetary policy decision later. I closed out my CAD/CHF short at .7839 and closed half of my CAD/JPY position at 91.00.
CAD/CHF: +41 pips/+0.14% gain
CAD/JPY: +90 pips (half closed)/ +0.25% gain locked in. Stop on remaining position pushed to breakeven. Profit target left open.
Besides the weekend and SNB event today, I wanted to hop back into NZD/CAD as my main position. With the RBNZ raising rates and speculation now being priced in of a rate cut in Canada, this is a simple play I’d like to focus on if we see a pullback into NZD/CAD. For now, I’ll be in watch mode for that pair while leaving my remaining CAD/JPY open risk-free and with the potential to become a big winner if it continues to go my way.
Overall, I probably should have let these trades run longer, but I think moving in NZD/CAD is the better move as this pair has more going for it to spark a longer-term trend.
What do you think of my adjustments? Please leave a comment down below. Good luck, good trading, and thanks for checking out my blog!