Thanks to Mario Draghi and the ECB, the euro did get enough volatility for EUR/CAD to reach my short orders. And after a quick adjustment, my trade was closed for a small forex gain.
Original Trade Idea: Forex Trade Idea: EUR/CAD Short Again?
For those who were sleeping yesterday, the European Central Bank laid down new quantitative easing measures during their latest monetary policy statement yesterday, dropping the euro with the quickness as soon as the statement was released. But the market quickly turned higher in the the stratosphere during Mario Draghi’s press conference as soon as he hinted that the ECB is done adding stimulus for the time being. This sent EUR/CAD up to my first set of short orders at 1.5000, which were triggered. Fortunately for my position, 1.5000 was void of buyers, so the currency pair quickly found resistance and returned to the longer-term down trend.
Then comes the Canadian employment data today, and which was expected to post weaker than previous numbers. With that in mind, I decided to roll my stop on my open position down to 1.4800 to lock in some pips and close my open orders to short at 1.5250.
As expected, Canadian jobs came in weaker with the unemployment rate rising to 7.3% for the first time in three years. The Loonie dropped on the news, pushing my EUR/CAD position to the adjusted stop at 1.4800, where my trade was closed for a very small gain.
Total: +200 pips/ +0.09% gain on 0.50% risk
In hindsight, I probably should have rolled my stop down to the 1.4825 handle because 1.4800 was filled with sellers and turned the market back lower quickly. I usually do set my stops to the XX25 and XX75 levels to allow some play around the round levels, but I think I wanted a nice round 200 pips locked in.
Was that the right adjustment? We’ll have to wait and see, but I’m happy to walk into the weekend with a gain, no matter how big, especially since I can jump back in next week.
And until then, thanks for checking out my forex trading blog and have a nice weekend!