Forex Review: 2014-09-04
It’s safe to say I missed the boat on the EUR/AUD drop since the pair couldn’t reach my short orders ahead of the ECB meeting. Time to close up my orders and do a quick review.
Original Trade Idea: USD/JPY Update & EUR/AUD Short Forex Idea
Much like my missed USD/JPY long trade, I missed the sweet move lower in EUR/AUD (sparked by the surprise ECB rate cuts) because I tried to get in at a better price than at market. In hindsight, it looks like that was a bad entry technique to choose, but on the other side of the coin, we could have seen no action from the ECB and the euro spike in the other direction. So, it could have gone either way and I can’t control that, but I’ve missed so many good moves I’ll have to start going with multiple entry style techniques to avoid missing these moves in the future.
For now, I’ve closed my open short orders at 1.4200 and 1.4300 since the pair has already dropped far below my entry area. No trade.
I’m still interested at playing the trend lower, but since we saw the ECB actually make changes to policy, we may see profit taking in the short-term. I won’t be chasing the drop for now, moving into watch mode for now.
So, I’m completely flat and no open orders at the moment, and with the U.S. Non-Farm Payroll numbers tomorrow, I’m just gonna sit back and see what we get before reviewing the markets and creating new trade ideas. Stay tuned!