We got a super surprising selloff in the Greenback today, which was unfortunate for my EUR/USD position as the pair rocketed higher to my forex trade invalidation level. Here’s a quick review.
Original Trade Idea: Forex Trade Idea: EUR/USD Range Resistance?
I don’t know if it was the rumors of a Russia-OPEC deal, the weak ISM Services index data, or just long dollar profit taking, but the Greenback was smacked down today and then some. This was of course no good for my attempt to play previous strong resistance on EUR/USD that went all the way back to the beginning of December 2015.
On the way up, my second quarter position was triggered at 1.1000, and shortly after, my stops at 1.1125 were triggered to close me out at a small loss before the pair continued to move higher.
1st quarter position: -225 pips
2nd quarter position: -125 pips
Total: -159 pips avg./ -0.50% loss
I probably should have closed the trade earlier, but without a definitely catalyst and such a big surprise move, I wasn’t sure if there would be a whip back to previous session levels.
Overall, I would do this setup over and over again, but it just didn’t work out with the surprise move. And once this volatility and the picture becomes clearer, I’ll take another look at EUR/USD for a possible breakout play, or even a reversal back to the downside, all depending on what the story turns out to be. I’ll also continue to focus on my remaining open positions: GBP/CHF short, AUD/CAD short, and NZD/CAD long…all profitable at the moment.