Thanks to the FOMC meeting yesterday, volatility in EUR/USD spiked high enough for my way out short orders at 1.10 to be triggered and go positive very quickly. Time to adjust to lock in profits.
Original Trade Idea: Forex Trade: Getting Back in USD Long
After waiting for quite a while, and with hope quickly fading that I would get triggered, yesterday’s FOMC monetary policy statement provided the deep pullback I needed to play my short EUR/USD bias at a great price!
First, it was a strong USD selloff reaction to the comments from the Fed that current interest rate levels were appropriate, but the USD bulls recovered pretty quickly a few hours after the event. Of course, I don’t know the exact reason for the quick fade, but I think that the market knows that whether it’s in June or September, the Fed is still the only major central bank speculated to raise interest rates any time soon and that it’s most likely bullish for the Greenback. Whatever the case may be, I’ll look to lock in some of my quick gains and adjust my trade plan given the current price action. I’ve decided to:
Close my half position short order at 1.1200
Adjust stop on open position to 1.0775, keep profit target open
Watch for strong break below 1.0500 to potentially add a second half position
This trade adjustment locks in a 0.56% gain while keeping it open for any opportunity to increase my max gain. It’s a “no risk” trade with no theoretical limits for my gains–the kind of trades I like!