Here’s a quick forex of my short EUR/USD position, closed at my trailing stop ahead of the close of last week’s trade for a small profit.
Original Trade Idea: Forex Trade: Getting Back in USD Long
It wasn’t more than a few 4 hour bars after I adjusted my stop to 1.0775 that it was triggered, taking me out of the trade for a profit and highlighting how volatile the price action was after the FOMC monetary policy announcement last week.
Total: +225 pips/ +0.57% gain
Overall, a textbook trade with a little bit of luck thrown in since I didn’t think I’d get a retracement that high, and even though I’m out of the trade, I’m still bearish on on EUR/USD because of the monetary policy outlook divergence between the European Central Bank and the Federal Reserve. But with the main central bank events behind us for a while (mainly the start of ECB QE), I think a bulk of the downtrend may be done for now and it may be time for forex traders to take a break. So, I’ll look to trade EUR/USD slightly differently, at least with my entry technique to hop back into the trade; maybe scale in from here up to higher levels. Stay tuned for that new trade idea coming this week and thanks for checking out my blog!