Here’s a quick forex trade review on my EUR/USD short that hit my max profit thanks to the big European Central Bank monetary policy meeting this week.
Original Trade Idea: Forex Trade Idea: Short-Term Short on EUR/USD
There’s not much to say about this simple setup and price action other than, “Thank you Mr. Draghi!” Thanks to comments by the ECB Governor during his press conference after the monetary policy meeting yesterday, euro traders went into full bear mode on the potential for more QE, another possible rate cut, and more. This meant a breakdown in EUR/USD as well, pushing the pair to my max profit target at 1.1100 where my trade was closed automatically.
Total: +250 pips/ +0.56% gain
Overall, the technical setup was solid and on a fundamental idea that we may likely see dovish comments from the ECB. Fortunately, it all worked out and I was able to make more than a 2:1 R:R. And although I’m out for now, I will continue to watch EUR/USD for another shorting opportunity as I think this event will likely continue to put pressure on the pair for now. Stay tuned and have a great weekend!